You should carefully consider which entity will own the business and business assets to effectively minimize tax liabilities, offer asset protection and to deal with incoming and outgoing partners. Whilst this is of paramount importance when setting up a new business, there may be opportunity to restructure your business when contemplating rapid business growth or taking on new partners or investors.
There are many options that a business owner can go about structuring a business including:
- sole trader
- partnership of individuals, trusts or companies
- joint venture; and
- trusts including unit and discretionary trusts.
Consideration of various factors including business risk, tax implications, nature of the business and asset protection are necessary to determine the most appropriate structure for your business. Our business and commercial lawyers work with your other professional advisors (such as your accountant or financial advisor) to assess the best structure and to draw the necessary legal documentation.
It is imperative you seek professional business structuring advice noting that having the wrong structure could mean substantial and unnecessary costs for you in the future. Speak to a professional today on 07 5526 0157.