Some of the business structures that Russel can adopt are as follows:

-Partnership: When two or more than two people run a business by contributing capital, assets, and skills with a view to earning a profit are called partnership business. All the partners are liable for the firm's debt. Just like a sole trader, the partnership is also not a separate legal entity, and they have unlimited liability. A partnership business can be formed by written agreement or verbal agreement. The number of partners involved depends on the nature of the profession. The profit of the business is distributed to the partners in the proportions agreed. Some of its drawbacks are that one partner is also jointly responsible for other partners decision, in case of death, bankruptcy, or withdrawal of a partner will end the partnership. Each partner is taxed individually (Barron, 2016, p118 (2)).

-Joint venture: A joint venture is a contractual arrangement in which two or more parties agree to pool their resources for the purposes of accomplishing a specific task such trading, commercial, mining, or other financial undertaking or endeavor with a view to mutual profit. While it may sound like partnership business, but it is possible to draw a distinction between these two. Unlike in partnership, participants of joint venture receive profits of the enterprise separately. Profits are paid individually whereas, in a partnership, profits are paid to the partnership. No formalities are required to establish a joint venture unless the participants want to trade under a name. This form of business can increase competition among participants. For instance, Samsung and Spotify, Ford and Toyota, etc. these companies have worked together for different projects sharing their resources (Barron, 2016, p 619 (3)).

-Proprietary company: A proprietary company may be formed by a minimum of one person and can have only one director; however certain restrictions are placed on the company with regard to the maximum number of shareholders (namely 50). Such companies have fewer disclosure requirements and are much cheaper to maintain than public companies.

-Public company: It is a form of a business organisation which operates and exists as a separate legal entity and it can involve in fundraising from public. It raises funds from sale of shares and debentures. One of the main advantages of such business is that it has limited liability. A minimum of three directors are required to form a public company. There are no restrictions on transfer of shares. The name of the company must include the word 'limited' or the abbreviation 'Ltd'.

-Trust: A trust is a relationship recognized by the law of equity where a trustee (an individual or a company) carries out business activities and holds property for the benefit of other party which is termed as a beneficiary. The trustee and the beneficiary have a fiduciary relationship. A trust is not a separate legal entity. The trustee can decide in what proportion will the profit be distributed among beneficiaries. A trust is a relatively complex legal structure which needs to be established by a solicitor or an accountant.

2

If Russel continues to operate as a sole trader, the company would not be able to expand and meet the growing demand. Pinnaclewear's profit is growing and in the business world idling capital and liquid assets are despised. Russel and his wife Megan possess a considerable amount of wealth to expand and diversify his business. Capital and liquid assets need to be invested, that is why it is advised that he should adopt another form of business organization.

Proprietary companies vastly outnumber public companies and makeup 99% of all registered Australian companies. This form of business organization is suitable for transforming small-sized businesses into medium-sized businesses. This kind of business can raise funds from their own internal sources or from lenders. Such companies must include the word 'Proprietary' or the abbreviation 'Pty'. It can have a maximum of 50 shareholders. In this form of business, Russel would need to have a director (Lipton, Herzberg and Welsh, 2016).

Another alternative for Russel is to adopt partnership business. He can be benefitted from joint contribution of capital, assets, and skills. All the responsibilities and financial obligations will be shared among partners providing more time for study and research to grow business and find innovative ways to prosper. A partnership form of business organisation would be the more suitable for Russel considering his business size and scale.

Public company is also possible for Pinnaclewear. However, there is a number of factors that need to be considered. If Russel chooses to make his company public he can generate large amount of money from the public, he can enjoy limited liability and contribution of shareholders, directors, and other stakeholders. In contrast, his power and control over the business will be reduced significantly, the company cannot maintain much confidentiality as such companies are required by government authorities to publish financial statements and other information. Moreover, establishment, taxation, and compliance while operating is relatively more complex and lengthy process.

Therefore, Russel is advised to form a partnership business as it allows him to expand his business and carry out business activities at large scale without having to lose significant control over the business.

3.

Different forms of businesses have different structures because of their size, scale, and the very nature of business operation. When structure is different, control and power will be shared among different people involved. Considering this fact, Russel should decide as to which form of business is appropriate for Pinnaclewear.

If he changes the current form of his business organisation to a public company then his control will reduce to a large extent and the authority needs to be shared among partners, directors, and major shareholders. After the company is publicly enlisted in ASX, it would have a separate legal identity and it would have to go through many legal requirements and procedures. Public companies operate in a highly regulated environment overseen by two authorities - the ASIC and the RBA. It would be separate from its owner. In this case of a company, he would have the least amount of power over the business simply because of high number of people involved and the business will largely be funded by public or lender's money. However, he can take up different position and responsibilities to increase his authority. Moreover, there is no limit for the number of shares to be issued and the way the company can deal with its share capital is strictly governed according to corporation act 2001. These companies are required to held annual general meeting, make financial statements and information readily available to the public and regulators. If he were to operate as a sole trader, he would not have to go all these requirements. Russel should also know thata director can be removed if the majority of the shareholder votes for his removal in an ordinary resolution and the director has to be given the right to be heard with a two-month notice (Turinomujuni, 2020, p190 (2)).

A proprietary limited company can also be a good option for Russel. A proprietary company cannot offer shares to the general public. However, there can be intervention from shareholders which can be as many as 50 non-employee shareholders. Consequently, it will make the decision-making process, implementing new plans and policies a lengthy process as there may need to be approval from other parties. Section 144 of the Corporations Act states that companies must display their name prominently wherever they do business in a manner that is open to the public. Looking on perks, he can enjoy limited liability and privacy benefits that public companies cannot. The company structure is very different from sole trader. There exist many hierarchies and departments. Within these departments, there will be many employees working for the organization (Reynolds, 2019, p1 (4)).

The most suitable business structure for Russel in terms of having more control in management and decision-making is partnership business organization. This structure has picked up popularity among sole traders who are looking to expand and diversify their business without having to sacrifice a big part of control over the business. He can enjoy single layered taxation. In case of his absence, there will be someone to look after the business as an owner which would not have been possible if he continues to operate as a sole trader. Losses and debts will be shared among the partners.

Just like sole trading, partnership business is also not required to register with ASIC, they just need ABN (Australian Business Number). Russel would need to share control and right over the business with his partners only whereas in other forms of business he would have to share it with so many other parties such as directors, shareholders, executives and so on. Sole trading and partnership business have many similarities in terms of legal requirements, company structure, taxation, liability and so on. Therefore, Russel can take this transition of his business from sole trading to partnership without many hindrances and constraints.

4.

Voilet's suggestion to Russel to set up a company to run the business is possible but not the best option for him. Russel wants as much control of the business as possible, and this business structure provides him the least amount of control as compared to other forms of businesses.

A company structure would provide Russel with liability protection, access to funds, and a better structure to manage business operations which suits his current situation. First, Russel has a wide range of assets and property which are exposed to liability arising from his sole trader business. A sole trader is personally liable for the debt obligations and any liabilities incurred from operating the business. As a result, Russel has tried to transfer some asset ownership to his wife for assets protection reasons only. A company structure will limit the liability of Russel and protect his assets in case the company defaults its debt obligations. Second, Russel intends to expand his business and acquire a building for the business. A company structure will enable Russel to raise capital to fund the expansion and the acquisition of business assets. Further, Russel operates both locally and overseas and therefore considered manufacture under the Corporations Act. This implies that he is exposed to product liability claims. In this case, the company would be liable for any claims and he would not be held personally liable for any action performed in the ordinary course of business.Lastly, a company would provide Russel with a better management structure to manage his employees. A company operates under a standard structure with each employee having a distinct role and responsibilities. This will increase efficiency and accountability in his business.

A company would allow Russel to save funds from taxes and allow him to expand. From the case, Russel is expected to generate substantial profit returns, and would be expected to pay higher taxes if he opts to other structures such as partnerships or c-corporation. A company structure enjoys some tax benefits that other business structures do not. As compared to partnerships, a company structure is a separate entity from the shareholders and therefore files taxes separately from the shareholders. Corporations have a double taxation method which implies that both the owner and the corporation pay taxes for income generated. Also, as compared to S-corporations, shareholders of a company are not taxed for retained profits not distributed. With these retained earnings, Russel can expand the business and as well open the food and catering business. A company structure would allow Russel to raise funds easily. A company is legal entity and can apply for loans and use its assets as security and be liable for the payment of the loan. However, other structures such as general partnerships, the owners are still liable for loans acquired by the business.The disadvantage with a company structure is that companies are subject to regulations outlined by both ASIC and the Corporations Act. This requires Russel to comply with regulations that other structures are not subjected to. Companies generally have more legal, tax and compliance responsibilities to adhere to as compared to other structures such as partnerships and sole traders.

Note: on the basis of the above answer prepare the slide on the following headings

1. Forms of business structure for Russle
2. Issues that will arise while selecting the best business structure for Russel
3. Factors to be considered while selecting the best structure
4. how would the other business structure differ from just Russel as a sole trader specifically from the aspect of control business
5. Is violet correct to suggest that Russel should set up a company to run the business
6. what advantages and disadvantages would a company structure have compared with the other above business structures