Whether you’re a serial entrepreneur, purchasing an existing business or a tradesperson setting out on your own, starting out in business is an exciting time. No body starts out with the intention of losing their personal assets or having messy legal disputes with their business partners; unfortunately this is often the result. An early investment in a good quality legal advice can pay unknown dividends for your business.
At McNamara Law we work with your accountant and other advisers to gain an understanding of your business as well as your personal circumstances and goals, to create a structure and plan that will give you the best chance of success.
The key things to consider when setting up a business structure are:
- asset protection
- tax effectiveness
Every business, and every person involved in a business, has a unique set of factors so there is no ‘typical’ structure that will suit every business. These factors will include:
- size of the business
- potential professional or public liability
- number of people investing in the business (stakeholders)
- stakeholder’s relationship with each other
- stakeholder’s personal assets
- stakeholder’s other business interests
- stakeholder’s age and family
The type and complexity of the structure will be determined by considering all the relevant factors, and may include one or more of the following:
- discretionary trust (individual trustee)
- discretionary trust (corporate trustee)
- hybrid unit trust
- partnership (individuals)
- partnership (trusts)
- sole trader
- self-managed super fund
- partnership/ shareholder/unit holder agreements
McNamara Law will provide you with exceptional personalised advice on the most effective structure for your business. We also consider estate and succession planning issues, including provisions for ending your ownership of the business.