register your partnership with Consumer Afirs Victoria CAVif setting up a
Get your fillable Tax File Number declaration form
If operating as a business enterprise, the partnership registers to collect Goods and Services Tax GST when annual turnover passes , payable monthly, quarterly or annually. The ATOs personal services income rules may apply if youre a consultant or contractor in a partnership.
A partnership has its own Tax File Number TFN, and usually an Australian Business Number ABN and lodges its own, separate tax return. However, once the ATO assesses this, the partnerships profits are ided among the partners as set out in the partnership agreement.
Each partner then adds their share of the profit or loss to their personal income tax for assessment by the ATO.
apply for the relevantlicences and registrations
A partnership is formed when two or more people up to go into business together. Partnerships can either be general or limited.
The ATOs information onPartnership Tax Returnwill help when filing your returns.
check that your proposed business name doesnt infringe on existing trademarksif you and your partners are not trading under your personal names
A mily partnership is where two or more members are related to one another.
A limited partnership is one where the liability of one or more partners for the debts and obligations of the business is limited. A limited partnership consists of one or more general partners whose liability is unlimited and one or more limited partners whose liability is limited in proportion to their investment. There is no maximum number of limited partners.
As a member of a partnership, youre responsible for your own super arrangements because youre not an employee of the partnership. You may also be able to claim separately a deduction for personal super contributions you make.
Stepbystep choose the best business structure for you.
A general partnership is one where all partners are equally responsible for the management of the business, and each has unlimited liability for the debts and obligations it may incur.
If youre operating under your own personal names, there is no need to register, but you must register a business name if you have one. For more details and examples read our onregistering a business name.
draw up a Partnership Agreement highlighting key aspects, such as the roles, authority and liabilities of each partner, and distribution of profits and assets see thesample Partnership Agreement templateat on what areas it should cover. Your solicitor will be able to draw up an Agreement that will meet your specific needs
If you employ people, youll have responsibilities, such asemployee payroll tax and PAYGincluding reporting and paying tax on fringe benefits andsuperannuation paymentsfor any eligible employees.
Use theAustralian Business Licence and Information Service ABLIS, a onestop tool to help you find all the local, state and federal licences, registrations and permits you need.
Register with CAV as a limited partnership or incorporated limited partnership
Partnerships are governed by thePartnership Act .
agree with the partners on key issues, such as limits of liability in proportion to their capital investment and the level of authority each partner holds in binding agreements on behalf of the partnership
An incorporated limited partnership is a special of limited partnership, primarily used by businesses engaged in highrisk venture capital projects. You should seek expert legal advice if considering forming this of partnership. More information can be found in ourincorporated associationsection.
Once youve looked at the pros and cons, to register as a partnership youll have to
If youre unsure about whats right for your business, our stepbystep guide can give you a and quick assessment of which structure is more suile for your business. You can change your business structure to suit your circumstances,when the business grows or changes direction.
determine the number of partners if any both general and limited if any
Stepbystep choose the best business structure for you
Limited and incorporated limited partnerships must be registered with Consumer Afirs Victoria CAV.
Australian Licence and Information Service ABLIS