Choose Best Business Entity for Consulting Business

First, anyone considering starting a consulting business – or any business, for that matter – should take precautions to protect their personal assets in the event of a lawsuit or bankruptcy. Under Victoria law, the business entities that hold the owners or operators of a consulting business liable for all business debts include a sole proprietorship, a general partnership and, in a limited partnership, the general partner.
In a general partnership, where two or more individuals are engaged in a profit-making venture together – all partners are jointly and severally liable for all business debts of the partnership. In a limited partnership, there is a general partner who has unlimited personal liability for all business debts. In short, all of these business forms leave at least one person in a new consulting business exposed to personal liability.