Corporate Structuring

Corporate Structuring

Corporate Structuring is an important step in planning for the future and should reflect your overall business plan.

There are two steps in developing a structure. The first is the micro structure, where you determine whether you will establish a business or a company. A company is probably the best fit if you intend on operating nationally, involving other shareholders or have big plans for growth. However, if you only intend on operating in the one state, intend on remaining the sole owner and don’t have big plans for expansion, then a business maybe a better fit.

The final step in making your assessment of a company or a business will be a discussion with your Accountant as to what provides the best returns and minimises tax liabilities.

If you have established a company you may then want to establish a trust in order to minimise tax. There are different types of trusts that you can establish. Profits may move from the Corporate Entity to the trust and subsequently distributed amongst beneficiaries. Tax will then be paid according to the circumstance of each beneficiary and not on the standard company tax rate.

The three types of trusts are:

  • Discretionary Trust
    • The trustee may decide what beneficiaries receive.
  • Unit Trusts
    • Each beneficiary is paid according to their units in the trust.
  • Family Trusts
    • Made up of family members only. The trustee may decide what beneficiaries receive.

Contact Anthony Raso & Associates

Whether you need lawyers in Knox, Waverley, Boronia, Wantirna, or elsewhere, we can help you set up your corporate structure.

You can contact us by phone at (03) 9763 6399 or through our online enquiry form.

 

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