NSW Intellectual Property Law - What is the Australian Equivalent of LLC?

[User101]

Hello everyone.

I am starting a dropshipping business soon and was looking to set up a legal entity to protect my assets. But there is no LLC here in Australia, I found LLP, which seems similar but not sure if it protects my assets.

The items I will sell are generic and not trademarked but it's for a "just in case" scenario. I don't want to deal with lawsuits down the road. What is the equivalent of an LLC here and what is my best option under Intellectual Property Law?

 

[Rob Legat - SBPL]

Rough equivalence in my understanding is a Pty Ltd company, but from memory there are unique differences.

 

[User101]

Rough equivalence in my understanding is a Pty Ltd company, but from memory there are unique differences.

Hi thanks, but these are the options I can choose from not sure which one :

Australian Public Company Help - Public company
Public companies can sell shares to the public to raise funds They can have an unlimited number of shareholders.

Australian Private Company Help - Private company
Private companies can't raise funds from the public by selling shares. They must have 50 or fewer shareholders.

Co-operative Help - Co-operative
Co-operatives are owned and controlled by members, and operate for the benefit of their members. For example, food co-ops selling food at a lower price to members.

Other Incorporated Entity Help - Other incorporated entity
Organisations that are like companies but not incorporated under the Corporations Act 2001 (such as foreign companies and associations incorporated under state acts).

Strata-title Help - Strata title
Where a title to a property is divided into a number of units for sale.

Public Trading Trust Help - Public trading trust
Trusts created to finance or get an interest in the operation or development of a business or project.

Other Unincorporated Entity Help - Other unincorporated entity
Organisations that are formed by a number of people for a common purpose and that aren't registered with any government authorities.

Limited Partnership Help - Limited partnership

 

[Rob Legat - SBPL]

A Pty Ltd company is an Australian Private Company. It is a 'proprietary' company, and shareholders' liability is 'limited' to the extent of unpaid shareholding.

 

[User101]

So when I go to register my ABN I choose private company?

 

[Rob Legat - SBPL]

No. You register your company through the Australian Securities and Investments Commission (ASIC). Once the company is registered you apply for an ABN (and you should also get a Tax File Number from the Australian Taxation Office).

 

[User101]

No. You register your company through the Australian Securities and Investments Commission (ASIC). Once the company is registered you apply for an ABN (and you should also get a Tax File Number from the Australian Taxation Office).

Ok thank you.

One last question I have. Once I have successfully applied for a Pty Ltd, do I register for the gst so I am gst exempt?

 

[Rob Legat - SBPL]

You'll need to get specific advice on whether you need to register for gst depending on your products and services, and expected sales. I suggest you speak to an accountant about that.

 

[Tim W]

Ok thank you.

One last question I have. Once I have successfully applied for a Pty Ltd, do I register for the gst so I am gst exempt?

I say this with all due courtesy...

Looking at your posts in this thread (in particular the one quoted at the top of this post),
you do not appear to have any real idea what you're doing, or what you're getting into.
Further, the kind of fully thought out, case-specific advice you need,
given in terms you will understand, and upon which you and those with whom you are working can rely,
is well and truly beyond the scope of this board.

In which case, I most strongly suggest that you take Rob's advice about seeing both an accountant and a lawyer.

 

[User101]

I say this with all due courtesy...

Looking at your posts in this thread (in particular the one quoted at the top of this post),
you do not appear to have any real idea what you're doing, or what you're getting into.
Further, the kind of fully thought out, case-specific advice you need,
given in terms you will understand, and upon which you and those with whom you are working can rely,
is well and truly beyond the scope of this board.

In which case, I most strongly suggest that you take Rob's advice about seeing both an accountant and a lawyer.

You're right. I wanted to learn this so I don't have to go to a professional. But I guess its probably good idea to go to a lawyer, but my thing was that this e-commerce/Shopify store I am starting, I don't plan on making it a store making over for example 100k. I am just trying something small to get experience. Do you think its still worth it in this case to get an accountant and a lawyer? Don't know if it's worth mentioning but I am only shipping and selling products to the us. Usually, my supplier is in China.