Carbon's Team of Chartered Accountants Will Set You Up With The Right Structure For Your Perth Business
Finding the right structure for your business that matches your vision and allows a strong and strategic foundation from which to grow can be a difficult proposition.
There are a variety of options are plentiful and understanding them and what they offer your business is essential. That’s where Carbon come in. Our understanding of your business goals and strategies gives us the insight we need to ensure your business is in the best structure from the day you start up.
The right structure for your business won’t just come ‘off the rack’. We work with you to ensure you understand your options and why one structure may be more favourable than another for your circumstance. Alternatively, it may be a combination of a few structures that works best for you. Every bit of advice is tailored for your business needs.
Some Business Structure Options Include:
Family & Unit Trust
Self Managed Super Funds
- Low cost option for starting up our business.
- Controlled by you as an individual, and you as the individual are responsible for the income, expenses and debts of the business.
- Not the ideal structure for sustained growth in your business, as new owners will lead to a change in the business.
- Low cost option for starting up a business, however, every year a separate tax return will need to be completed.
- Controlled by two or more people, who share profits based on set percentages. Changing ownership percentages can lead to further taxation.
- Not ideal for sustained growth in a business, as adding, or removing partners, will mean setting up a new business structure.
- A structure that offers set ownership entitlements.
- Control is dictated by rules set by the owners, and ownership percentages.
- Ideal for sustained growth as ownership can be changed without changing the business registrations.
- Structure allows owners to separate their personal assets, from that of the business protecting both personal, and business interests.
- Tax paid on profits, based on company tax rates.
- A structure that offers a lot of flexibility in family owned business’. Family members can enter and leave the business without changing the trust itself.
- Profits allocations can be adjusted year to year, as entitlements are not set, increasing cash flow in your business.
- Can be used for 80 years, allowing business to pass down generations without substantial tax implications.
Self-Managed Superannuation Funds
- Designed to give the owners of these funds control over the investments that will fund retirement Superannuation is a low taxation option for investments, if managed appropriately Once in retirement, tax can be minimised to zero, increasing funds for your retirement.
Starting out with the wrong structure and then having to make changes generally comes at a cost. This cost is financial, in your time and in your business’ reputation. Choosing the right structure for your business means asking yourself some important questions about how you want your business to be and what you want to get from it.
- Can you pay wages?
- Is asset protection important?
- Is taking dividends from the business an option?
- Can you utilise losses?
- Would you be able to distribute to your kids and spouse?
- Will your wage be included in payroll tax?
- Or will you have a liability in your own name at year’s end?
- Can key employees buy into the business?
- Will you achieve better tax benefits when your business is sold with capital gains discounts?
There’s plenty to think about and that's what Carbon does for you, the hard thinking, analysis and strategy development to make sure your business is structured the right way, from the beginning.