Michael owns a restaurant in Parramattas busy Church Street precinct. His restaurant is very popular and he recently purchased another restaurant in Blacktown to add to his portfolio. Michael has been running the business until now for 30 years as a sole trader.

Michaels business is flourishing. After completing their Bachelor of Business degree, his two sons, Adam and John, recently decided to join Michaels business. They see opportunities opening up in new markets and would like to expand the business even further. They want the family business to be in a form that would allow it to expand as necessary and also make it easier to raise the capital required for this expansion. Theyhavealsoheardthattherearetaxbenefitsinoperatinga business through a company structure rather than as a sole trader or partnership.

Adam and John persuade their father to take advice on turning the family business into a family-run company. There is some contention regarding the naming of the company. Michael prefers to keep the current name of the business, whereas Adam and John prefer the name Sicilian Treats. Michael is skeptical about the idea of incorporating as he thinks this business structure is not suitable for small businesses like his. He doesnt understand the effect of a company business structure or what the advantages would be for his business. He also is afraid that there are only disadvantages and that his two sons might try to push him out of the business. Michael wants to make sure that he retains control if the ownership of the business.

AdviseMichael and his sons of the steps that need to be taken to incorporate and registera company and the advantages and disadvantages of running the business as a company. You should also advise Michael on all the other concerns which he mentioned.