Structuring is very important for any business, get it wrong the first time and you will pay more tax in the long run and incur costs in restructuring the business.
Any structuring advice needs to consider at a minimum:
- the life cycle of your business, from start-up, growth, taking on partners, succession planning and the sale of your business
- flexibility
- ease of use
- asset protection
- tax planning
- tax minimisation
- remuneration
- distribution of profits
- personal services income
The most common business structure types are:
- Company
- Discretionary (or family) Trust
- Unit Trust
- Partnerships
When advising a client on the right structure, a detailed needs analysis is required as well as education for our clients on the practical implementation and operation of the structure.