You work at Azure Beach Accountants and Financial Services (ABAFS) as a Senior Tax Accountant and in your role, you are supervised bythe Chief Financial Officer (CFO) in the firm, Cris Rhanda. Cris has assigned you a range of tasks to assist clients with advice as well as in the preparation of their tax. You should ensure that you comply withAzure Beach Accountants and Financial Services Client Tax Policy (pdf).

• Azure Beach Accountants and Financial Services (ABAFS) have recently acquired a new client, Mark Smith, who owns a business with an income of $200,000.
• Mark is married to Zoe, and they have 2 children aged 13 and 15 years old. They own their own home and have approximately $60,000 in share investments.
• Both Mark and Zoe are new to business ownership, as both have only ever been employees and are not clear on the legal and tax aspects of operating a business through various business structures. They need your advice on the different business structures, the advantages, disadvantages, risks and your recommendation on the best option from a taxation viewpoint.

Task instructions: Using the template below present an analysis of the impact of taxation and legal issues on different types of business structures and legal entities including showing legal requirements, advantages disadvantages. An analysis of a sole trader is provided as a guide.

Table 5 - Analysis of legal entities

Structure	Legal requirements	Advantages	Disadvantages
Sole Trader: An individual operating as the sole person legally responsible for all aspects of the business.	Registration of business name, application for ABN, Registration for GST.	Control of assets and operation of a business. Salaries/operating expenses of business allowable deductions.	Cannot split the income of the business with others. Personally liable for debts of the business.
Partnership:
Trust:
Company: