Selecting the optimum structure(s) for your business and / or investments is critical.
Issues to consider when choosing your structure:
- Will there be other partners or equity holders in your business? Either now or in the future?
- What are your growth projections, i.e. do small business capital gains come into play?
- What is your intended time frame for the venture or business?
- What is your exit strategy?
- What is the risk profile of your intended business, or yourself?
- Do you need to separate key intangible assets such as intellectual property from the trading entity?
- Do you need to separate key tangible assets such as freehold land and buildings, or significant plant and equipment from yourself, or from your business?
- What are your estate planning needs? Do you need perpetuity?
- What are the financial projections for the business, i.e. do the costs of additional structures outweigh the likely benefits?
- Do you need limited liability?
- Do you need flexibility of income and capital distributions?
- Does your personal financial situation allow for re-investment of business profits?
This list is not exhaustive however the most common structures are as follows:
- Sole Trader
- Company (Pty. Limited)
- Discretionary Trust, also known as a Family Trust
- Unit Trust
- Hybrid Trust
Each have their own unique characteristics with different advantages and disadvantages. We suggest that you consider the options above and contact our office for a free initial consultation.
Other Structures include:
- Hybrid Trusts - - which may include a combination of fixed and discretionary income distributions
- Corporate Limited Partnerships - can be effective for holding significant joint property holdings
We also provide the following Accounting & Tax Services:
- Bookkeeping and Processing
- BAS & IAS preparation and lodgment
- Year end Financial Statements
- Tax planning and management
- Income Tax Returns
- Corporate Secretarial Services
Key Questions for you
- Does your accountant present the numbers in a meaningful way to you?
- Do you understand the key profit drivers of your business?
- Do you work on your business or in it?
- Do you regularly review key ratios and performance monitors?
- Are you structured effectively for retirement, asset protection or estate planning?