We are on-boarding Australian partner to run Australia operation. We want to structure equity in a way that they only own the equity for the Australia portion of the business. How can we structure our corporate structure to accommodate such need?
Your primary consideration, between AU + US jurisdictions is how taxation is handled.
In AU, you pay $0 cap gain + $0 on foreign earned income.
In US, you're taxed on global income.
Before you consider setting up a complex web of entities domiciled in different taxing jurisdictions, contact someone like H&R Block Executive Tax services + walk through your entire money flow with them.
The Executive Tax Branch contain some of the smartest people I've ever come across.
Talk with them first + you'll likely save a truckload of taxes.