Business Structures: Accounting & Legal Issues
Question 1
Rachelle and Max have been a couple for 20 years and they have three children, Amelia, Aspen and Luka. Luka is 8 years old, Aspen is 11 and Amelia is 15. Over their 20 years together they have accumulated two residential properties, one as their home and the other is a holiday house. Rachelle works 30 hours per week with Queensland Health. Max is a chef for a large Hotel in Brisbane, however in the last few years he has dreamt of owning his own café specialising in vegan food. Rachelle and Max are considering opening a café so that Max can realise his dream. They have located what they believe is a prime location for the cafe and are seeking your advice on how to set up their business.
Discuss possible business structures for the vegan cafe. In your answer, consider the advantages and disadvantages of each, and what asset protection strategies might be useful for them to consider.
Question 2
South East Qld Real Estate (“SQRE”) was incorporated in 2009 and is in the business of buying and selling land. SQRE’s accountant provides you with the following financial information: