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

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