Business Structure John and Fred Essay

Excerpt from Essay :

Under this system, "each joint venture partner would separately account for and pay tax on its income and claim the proportionate share of joint venture expenses" (Ernst & Young, no date).

Liability is also limited in the joint venture under Australian law. It is worth noting that in this case one part of the joint venture "cannot make the other joint venturer liable for debts that they incur in the name of the joint venture, unless authorized under the joint venture agreement" (Cordato Partners, 2012). Thus, John cannot undertake a cost and then ask Fred to foot part of the bill. This is something that differentiates a joint venture from a partnership, and is worth taking into consideration, depending on how the two men expect to handle the operations and financing of the venture. This
Parts of this Document are Hidden
Click Here to View Entire Document
also makes joint ventures a little bit more complicated to manage than a partnership, because instead of having two people acting as one, you have two people doing their own thing for the common good. These two will need to consider which approach is more in line with their vision for the business.

Works Cited:

ATO. (2012). Partnership tax. Australiian Tax Office. Retrieved April 22, 2013 from http://www.ato.gov.au/corporate/content.aspx?doc=/content/37484.htm&page=106

Cordato Partners. (2012). Joint ventures for real estate? Cordato Partners. Retrieved April 22, 2013 from http://www.vendorfinancelawyer.com.au/joint_ventures.htm

Ernst & Young. (no date). The Australian tax landscape. Ernst & Young. Retrieved April 22, 2013 from http://www.ey.com/Publication/vwLUAssets/The_Australian_tax_landscape/$FILE/The_Aust_tax_landscape_JBS.pdf

Net Lawman. (2013). Choosing a legal structure for your business: Partnership. Net Lawman. Retrieved April 22, 2013 from http://www.netlawman.com.au/info/partnerships-ins-and-outs-australia.php

Sources Used in Documents:

Works Cited:

ATO. (2012). Partnership tax. Australiian Tax Office. Retrieved April 22, 2013 from http://www.ato.gov.au/corporate/content.aspx?doc=/content/37484.htm&page=106

Cordato Partners. (2012). Joint ventures for real estate? Cordato Partners. Retrieved April 22, 2013 from http://www.vendorfinancelawyer.com.au/joint_ventures.htm

Ernst & Young. (no date). The Australian tax landscape. Ernst & Young. Retrieved April 22, 2013 from http://www.ey.com/Publication/vwLUAssets/The_Australian_tax_landscape/$FILE/The_Aust_tax_landscape_JBS.pdf

Net Lawman. (2013). Choosing a legal structure for your business: Partnership. Net Lawman. Retrieved April 22, 2013 from http://www.netlawman.com.au/info/partnerships-ins-and-outs-australia.php

Cite This Essay:

"Business Structure John And Fred" (2013, April 22) Retrieved January 23, 2021, from
https://www.paperdue.com/essay/business-structure-john-and-fred-90088

"Business Structure John And Fred" 22 April 2013. Web.23 January. 2021. <
https://www.paperdue.com/essay/business-structure-john-and-fred-90088>

"Business Structure John And Fred", 22 April 2013, Accessed.23 January. 2021,
https://www.paperdue.com/essay/business-structure-john-and-fred-90088