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Australian equivalent of LLC?

Discussion in 'Intellectual Property Law Forum' started by User101, 18 May 2018 at 1:56 PM.

  1. User101

    User101 Member

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    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?
     
  2. Rob Legat - SBPL

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    Rough equivalence in my understanding is a Pty Ltd company, but from memory there are unique differences.
     
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  3. User101

    User101 Member

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    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
     
  4. Rob Legat - SBPL

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    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.
     
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  5. User101

    User101 Member

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    So when I go to register my ABN I choose private company?
     
  6. Rob Legat - SBPL

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    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).
     
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  7. User101

    User101 Member

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    Ok thank you.
     
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