Structuring

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
• Partnership
• 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