• When starting a new business, it is important to get the business structure correct from the beginning, and to ensure you have the commercial advice and guidance required to make intelligent choices.  

    The choice of business structure has a significant impact on flexibility, asset protection and the amount of tax you may have to pay during the lifetime of the business; even if the business is sold or merged with a third-party as part of a greater strategic choice. As such, great care must be taken to get the business structure correct, and to take advantage of benefits that may not always be applicable at inception.

    There are many different types of structures. The most common business structures are:

    -          Sole proprietorship;

    -          Partnerships;

    -          Companies;

    -          Discretionary trusts;

    -          Unit trusts; or

    -          Self-managed superannuation funds.

    In making the choice as to which structure to use, some of the principal considerations are:

    -          Set-up and ongoing administration costs;

    -          Protection of the assets of the entity and the owners;

    -          Flexibility in the structure and in distribution of the profits of the business;

    -          Minimisation of tax; and

    -          Suitability for desired exit strategy (succession plan).

    Situations which may influence your decision may include the following:

    -          You have an existing structure through which you have traded for many years;

    -          You have losses in your existing entity and wish to offset them in the new enterprise;

    -          You have a short-term goal of selling the new enterprise without taking profit from the new business prior to selling it;

    -          You have no immediate family with whom to split income;

    -          The business is high-risk with little prospect of capital gain. Require the protection of incorporation without complexities of a trust;

    -          You plan for rapid business expansion and wish to be able to give others equity in the business in the future;

    -          You want to include your family but protect your assets; or

    -          You want to protect the business, for the benefit of your life partner.

    Fixed price business structuring services and a fast 48-hour turnaround for our clients.

    Contact Harbourside Legal Commercial Lawyers today and get the expert advice.

    Contact us to find out more or to arrange a consultation with one of our experienced business succession solicitors.

    Contact us through our enquiry form or Phone 02 9262 3553.

Call Now
Lawyers Available to Help Now!

Need to speak with a Lawyer? Please complete the form and one of our legal representatives will contact you shortly.

Speak to a Lawyer