Business
Understanding Phantom Share Option Plans
Phantom Share Plans (PSS), also known as shadow equity plans or phantom stock plans, are designed to replicate the benefits of share ownership without granting actual equity to employees. it
A business consultant is often an expert in their field. They provide specialist advice in a particular industry or field. This article outlines key legal considerations for setting up and operating a consulting firm in Australia.
In this article, we will take you through our top 5 tips to protect your business and how to operate legally. A business consultant lawyer can advise you on important things to know when running or starting a consulting firm.
Setting up a business consulting firm in Australia involves several important steps.
Choose the right business structure, register with ASIC, and secure comprehensive insurance to protect your business.
The first step is to determine the legal structure of your consulting firm. In Australia, common business structures include sole trader, partnership, company, and trust. Each structure has its advantages and considerations, such as liability, taxation, and compliance requirements.
Talk to a business consultant, lawyer or accountant to find the right structure for your company.
Once you have decided on the business structure, you may need to register your firm with the ASIC. You will also need a partnership agreement if you are operating as a partnership.
You may need to choose a business name, obtain an ABN, and register for Goods and Services Tax (GST) if applicable.
Insurance is a critical tool to protect your business. Make sure you speak to an insurance broker and get comprehensive insurance policies in place.
Again, depending on your business type, you may need:
In Australia, the specific licenses and permits required for a consultant business can vary.
The requirements will depend on the nature of the consulting services provided and the location of the business. Generally, there are no specific licenses or permits that are required for all business consultants.
However, here are some things to keep in mind:
You are likely to require some form of licence if you provide:
You might need a permit for your consulting business, depending on what type it is and what you do.
For example:
You can search for the types of permits you may need by visiting your local council’s website. Alternatively, a business lawyer can do this for you.
Additionally, you should have appropriate contracts and legal documents in place to protect your business interests. These may include client engagement agreements, confidentiality agreements, and terms and conditions of service.
Goods and services agreements set out the rights and obligations of the buyer and the seller. If you are buying or selling goods and/or services, you will need a contract. While most business consultants will be providing services in the form of advice, it is important to have the right terms in place.
For example, we have seen costly mistakes by businesses that buy goods and services critical to their business or of high value. If you don’t have the right terms in place, you may find yourself having to pay a supplier for a fixed term and be unable to terminate the contract.
Consulting contracts are a type of professional services agreement that governs the provision of professional advice.
We suggest including key terms for consulting contracts, including clauses for liability limits, avoiding fitness for obligations, and stating your client’s expectations. This may include ensuring that your client provides timely information.
If you’re in the construction industry, also check out our article on common problems in consultancy agreement in the construction industry.
Website terms and conditions are important to protect your website and outline how you handle personal information. They also set out how your business interacts with website visitors and how to request a refund, for example.
We recommend the following website terms and conditions when setting up as a business consultant:
Employment agreements govern the terms on which you employ staff. You are likely to hire team members as your business grows. Having a robust employment contract in place will aid in:
Ensure that you comply with relevant laws and regulations when setting up a business consulting firm. This includes understanding your obligations under the Australian Consumer Law, privacy laws, and employment laws.
Remember, setting up a business consulting firm involves legal considerations that may vary depending on your specific circumstances. Always get advice from an experienced consultant lawyer or accountant to follow rules and keep your business safe.
There are various types of consultancy businesses you can run. Understanding your options and approaches can help you set your business targets and goals to ensure that the business is moving in the direction you want.
Setting clear financial targets is crucial. Determine your desired revenue, profit margins, and growth rate.
This might involve setting monthly or quarterly income goals, budgeting for expenses, and planning for investment in resources or tools.
As your consultancy business grows, you may need to hire or contract additional staff.
Establish goals related to team expansion, such as the number of consultants or support staff you need, their expertise, and development plans. Consider the skills and qualifications necessary to provide a higher level of service.
A strong marketing plan is vital for attracting and retaining clients.
Define your target audience, develop a value proposition, and decide on marketing channels (e.g., social media, content marketing, networking). Your marketing goals should include brand awareness, lead generation, and client retention strategies.
Licensing requirements depend on your consulting field. For example, engineering, legal, or financial consulting may require specific licenses.
Insurance protects against potential liabilities, including public liability, professional indemnity, and workers’ compensation.
Essential documents include consulting contracts, client engagement agreements, confidentiality agreements, and website terms and conditions.
Contact us for a free consultation
We provide legal advice to business and individuals across Australia, no matter which State or Territory you are located. Our easy-to-access, online legal services mean that you can talk to our lawyers wherever you are, at a time that suits you.
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