Starting a business
Whether you have a great idea for a business or are looking to take over an existing operation, it is crucial to choose the correct business structure to ensure an optimal and efficient outcome.
There are a number of options available and the structure selected must suit the particular circumstances in order to achieve the desired result.
The structures available include:
Contact us for a non-obligation discussion to help you make the inform decisions to choose a structure that suit your new business.
Note that there is no ‘one size fits all’ structure that represents for all business owners. All relevant factors below need to be carefully weighed up when tailoring a structuring solution that best suits your needs.
A major consideration to choose the business structure is the ability to mitigate or eliminate the risk associated with your trading or professional business from reaching your personal assets including your home and other investments. Asset protection generally means protection from third parties’ ability to access your personal assets.
Income Tax Planning & Flexibility
Tax is likely the single area where those individuals with effective strategies will be far better off than those without.
The objective of select a particular structure is to create flexibility to allow distributions of income to a family member with a lower marginal tax rates, strategies to cap the tax rate at a particular level and importantly is must fit in your current and future plans!
In addition to Income Tax, there are other taxes to consider such as GST, Capital Gains Tax and state taxes i.e. Stamp Duty, which can often be missed and turn out very costly if you get it wrong.
Consideration has to be given to the costs of setting up and maintaining the structures. Benefits of structuring (i.e. asset protection and tax savings) have to exceed costs.
Finally, in addition to designing and implementing a structure, it is also extremely important to monitor it – something often neglected. Changes in rules and regulations and in the tax environment can sometimes have either a beneficial or negative effect on structures, and options may be available to help improve your current situation.
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