Reference no: EM133229436

Tony is Perth-based entrepreneur who has been developing artificial intelligence software which uses a machine-learning algorithm to randomly generate and compose pieces of music.

Whilst Tony believes that his technology will be very successful and have numerous applications (particularly in the marking and advertising space), he is aware that a lot more work is needed to develop the technology into a commercially viable product.

Tony's daughter, Morgan, is currently completing her PHD in Computer Science and has been instrumental in helping Tony develop the code. Tony wants to start the business because he wants to have a stream of passive income which he will use to for retirement and also put into a trust fund for his children, Morgan and James.

Before he can retire, he wants to ensure that any income generated by the business stays in the business for future development purposes, whilst alsochanneling some of the business money into the bank-accounts of his children to help them out.

Tony and Morgan have a healthy relationship and Morgan is keen to join the business in one to two years' time when she has completed her PHD. She has limited capacity to take on extra work at the moment but has agreed to help Tony where she can in the early days of the business.

To get things started, Tony will have to take out a loan from the bank.

Tony has come to you for advice. He would like to know which business structure would be best for his situation. He would like you to compare and contrast between a sole trader, partnership and trust structures as well as both private and public company structures and advise which would be best.