Corporate Structure

Flexibility * Risk Management * Maximising Returns

There are a variety of business structures available and the right combination for your business and investments can have a significant impact on protecting and growing your wealth.

corp-structureMany business owners and investors ask us:

  • What is the best structure for me and my business?
  • Am I in the right structure?
  • Am I getting the best benefit available?
  • What’s the difference?
  • What’s best for me?

What do we do?

Whether we are setting up a new structure for you, or reviewing one that you currently have, our approach is the same. We evaluate whether the business structure is the most appropriate for your current needs and future plans. We will cover:

  • Business structures suited to your industry and current ownership structure
  • Suitability for managing risks associated with your industry and protecting assets outside of your business
  • Your succession plan
  • Your family circumstances
  • Access to small business concessions for future sale of business
  • Tax effective structures
  • Future investors ability to buy into the business - capital investors, staff investors
  • Flexibility to retain profits and distribute income

What happens next?

After our initial discussion, we provide you with advice outlining the basis of our recommendations. Our advice will cover the key benefits and considerations of our recommendations. We also advise you of the costs, taxation and administrative considerations. This enables you to make an informed decision before proceeding.

Once you are ready to proceed we then:

  • Provide you with the setup fee to attend to payment as quoted
  • Order the business entities for you (trust, company etc)
  • Arrange appropriate registrations (ACN, ABN, GST, PAYG)
  • Meet with you to execute the documents

We use leading external providers at highly competitive rates, ensuring professionalism and highest quality of the corporate documents provided. We can also arrange tailoring to provide you with the appropriate level of flexibility and asset protection for your needs now & pre-empted for the future.

Generally, business structures are available electronically same business day, and express couriered to our office.

We then monitor the business structure on an ongoing basis to ensure it continues to support your goals and needs, and remains optimal.

Pros & Cons

Each structure has its own benefits and limitations and as your wealth accumulates your structure needs will change. Here’s a snapshot of common structures used by business entities & investors:

Consideration Sole Trader or Partnership Unit Trust Discretionary Trust Company
Asset Protection No Yes, if corporate trustee
Yes, if corporate trustee
Yes
Tax Rate Owner’s tax rate Beneficiary’s tax rate
Beneficiary’s tax rate
28.5% or 30%
50% General Discount available on assets held >12 months Yes Yes, if distributed to individual beneficiary
Yes, if distributed to individual beneficiary
No
Carry forward tax losses Yes Yes, may have CGT consequences Yes, if Family Trust Election made Yes, subject to certain conditions
Ability to advance loans to associates Yes May have deemed dividend consequences if there are unpaid loans to a company
May have deemed dividend consequences
Deemed dividend unless loan on commercial terms for Private companies
Structure Review

As time passes, as your business grows, changes and matures, your corporate structure needs change.

A periodic review of your business structure is important to ensure it remains appropriate, is flexible to meet your needs and is beneficial from a risk management and cost perspective, including administration and taxation.

We conduct a structure review at the time a new client with a pre-existing structure comes on board, and make recommendations where changes are identified as substantially beneficial.

In addition, we conduct a structure review every 3-5 years for our clients based on present business activities, future business plans, succession plans and personal goals. At any time we are only too happy to have an advisory consultation to discuss the various considerations and options.