Budding entrepreneurs, DJ PHUNKY and Club promotor , KHAN CHAN have been making a name for themselves in the local dance party industry. After saving enough money, the dynamic duo felt ready to take their business to the next level by opening their own night club.

After speaking to former nightclub owner, MEL O' DRAMA, MEL warmed them about the risks involved with starting a night club, including the high costs associated with securing a venue, liquor licensing, rent, paying staff etc. Infact, Mel knows the risks all too well , since he lost his club, all his savings and his family home when his former business partner and fellow club co-owner failed to renew their club's public liability insurance policy, thus making the partners personally liable for the losses suffered when the club burnt down.

Advise DJ and khan in relation to a suitable business structure to operate such a high risk business. You must support your answer with legal authority ( case , section )