Setting up the right legal structure from which your business will operate needs to be carefully planned from the outset giving consideration to factors such as taxation, asset protection, planned growth and capital investment, and the life of the business.
There are four main structures used to operate small to medium business, the advantages and disadvantages of each out reviewed below.
It is important to get the structure right from the outset to avoid implications of Capital Gains Tax, Stamp Duty or additional Income Tax if a restructure is required later down the track. When establishing a new structure you should also ensure any Agreements are set in place from the outset such as a Directors and Shareholders Agreement, Buy/Sell Agreements or Partnership Agreements.
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