Businesses can hold substantial assets and operate via a range of different entities. It’s important to understand the operational structure of your business and its purpose within your business group.
Your business structures should minimise exposure to creditors and potential predators whilst maximising access to all available tax concessions.
By implementing the most appropriate structuring you can optimise the benefits of wealth security and taxation relief. Appropriate structures allow:
- Taxation management (Income and CGT)
- Business risk management
- Protection of assets
- Succession planning
- Intergenerational wealth transfer
To find out how appropriate structuring can give you peace of mind around your business and personal financial affairs, please contact us for an appointment.
Breaking it down...
Within the lens of asset protection, we want to protect our assets as much as possible without overburdening ourselves with adverse consequences. In reality there is usually some “trade offs” when considering the extent of protection and the associated taxation implications.
In any business we want to assess business risk and manage the risks while considering the commercial outcomes.
Various structures can be utilized to form barriers between your assets and business risk for protection from creditors and potential predators.
A common question is “why did you start your business?”. “So I can sell it” is a comeback often heard. While this sounds counter intuitive, all business proprietors need to consider what is going to happen to the business in the long run? Is it to be sold or passed on to family members? Which ones? How is this to be funded and calculated? When considering the long term outlook for your business there are many factors that need to be considered well before ownership changes.
Simply put, how are we best to pass on our assets to the next generation in the most effective manner.