You have an idea, a concept, you want to develop into a startup or small business that can grow, borrow money or attract funders, employ people, issue shares, and do all the things that a business can do until you have a company the size of Atlassian, or an app that enables you to do the things you dreamed of doing, apart from working.
It is a reality that 60% of small businesses cease to trade within three years, with cashflow being the major reason. If you cannot pay your bills, including credit cards, business creditors or small loans, you could be forced into bankruptcy, or choose to declare yourself bankrupt to clean up the debt.
Whilst bankruptcy no longer means a term in debtors prison like Mr Micawber, nor is i…
Read the full article at: http://www.smartcompany.com.au/startupsmart/advice/startupsmart-legal/how-to-choose-the-best-legal-structure-for-your-startup-and-protect-yourself-from-bankruptcy/