CORPORATE STRUCTURE

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Getting your corporate structure right is extremely important

Your corporate structure is super important for a number of reasons.  Among them:

  • Providing you with asset protection
  • Quarantining different types of risk
  • The ability to attract and retain capital
  • Tax effectiveness during operation of your business
  • Access to tax concessions on exit

 

Don’t ‘set and forget’

It pays to review your corporate structure every so often to ensure it stills fits with your needs.  Corporate structures are set at a time and place but laws, circumstances and intentions change.  It follows that a structure that was once a perfect fit may no longer suit your needs.

 

The right time to review your structure is now…

There is no better time to review your corporate structure than right now.  Here’s why:

  • If you’ve purchased assets personally or in the business since the structure was set up, you may inadvertently have placed them at risk – better to know and deal with it than to find out the hard way
  • As your business becomes more valuable, the costs to migrate to a new structure will typically grow too
  • You may be approaching thresholds for tax-concessions that present an opportunity for you but only if you act before you reach those thresholds
  • If changes are recommended, you have time to decide whether to implement them in the current financial year or next – timing can often have a major impact on tax outcomes
  • If no changes are required, you’ve got the peace-of-mind that comes with knowing that your structure remains sound and appropriate for your needs

 

TIPS FROM OUR TEAM

  • Simplicity in a corporate structure is good, except where a level of complexity is justified.
  • No matter how good your structure is, it cannot protect you from calls made on a personal guarantee that you have given.  Be careful about giving personal guarantees and make sure they are revoked where appropriate.
  • Corporate restructures can trigger stamp duty and capital gains tax liabilities.  However, with careful planning and documentation these can often be kept to a minimum.

 

FOR MORE ABOUT CORPORATE STRUCTURING PLEASE CONTACT OUR OFFICE ON 1300 656 141

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