Have you considered how your business is structured?
Often we see business owners who haven’t stopped to consider whether their current business and personal structure still best suits their circumstances.
While directing focus to business operations, it can be all to easy to be complacent about the important details that help to minimize tax and protect assets.
With rollover and relief measures in place at the moment, now is a good time to review the way you operate.
Reasons To Consider Updating Your Structure:
If your business has grown, consider looking at a structure which provides for more flexibility when dealing with profit and the tax payable on those profits. A company can help cap your effective tax rate. A discretionary trust could help you share income between family members.
Do you deal directly with the public providing a service or activity? Run a restaurant or retail space? Do you operate in an environment or activity which can be dangerous? Mitigating business risk by separating your personal assets and trading activities should be a primary consideration. Using a company or inserting a corporate trustee can help reduce your potential personal liability and keep your assets safe.
Have you started employing staff or using subcontractors? Becoming an employer inherently attracts more risk to your business.
What are your plans for exiting the business? Thinking ahead now to consider your exit strategy and the structure required can save you dollars when looking to sell.
Have you accumulated assets in your business? If you have cash, equipment or other assets building up in your trading structure, these are at risk if something goes wrong. Separating assets can be a valuable asset protection strategy.
There is an enormous amount of effort and sacrifice that goes into running your own business – it is important to make sure that your current structure suits you now and into the future.
Stacey Quinn CA
Partner | Chartered Accountant
Coastal Accountants & Advisors
8/21 Birtwill St, Coolum
207/55 Plaza Parade, Maroochydore
5446 2422
www.coastalaccountants.com.au