When you are starting a business

When you are starting a business in Australia there are several different kinds of structures. You could be a sole proprietor, partnership or a proprietary limited company, also MBT Maliza Shoes,  known as a Pty Ltd company.

It is simple enough to know what the sole proprietor and the partnership involve. But it can be difficult to understand what the Pty Ltd company is. Let's first take a look at the pros and cons of starting a Pty Ltd Company.

Pros-

As a Proprietar Limited company the company itself stands legally as a separate entity. That means it is liable for itself. In the Pty ltd company there are share holders and their liability to the company is limited. This means that when they invest into shares they are only risking their investment. They can't lose more than that.

An individual or a group of partners can start a Pty Ltd company. This provides a lot of freedom for who you want to bring into the company in the early phase of business. Another benefit is that the company is not terminated by the death of a shareholder MBT Kaya, nor a bankruptcy of a director or shareholder, because it is an entity of itself. Additionally minors are allowed to be shareholders as well, giving you that much more room to get investors.