Deciding what structure you will run your business and investments through is an extremely important one because getting it wrong can prove costly.
The aim of the game is to distance yourself, your assets and your pooled profits as far away from risk (the business) as possible so that should anything go wrong, or any legal matter arise in the future, your most valuable possessions aren’t up for grabs.
At the same time the same structures created for asset protection also need to be flexible enough so as the ability to legally minimize tax, effectively is not inhibited.
Companies are treated as separate legal entities (invisible person) and therefore can be used as buffers in between yourself, your assets and your business. (They won’t protect you from illegal activity)
But to truly get your house in order and to protect both yourself and your assets from future harm, there are other things to consider, such as;
We collaborate with, and can introduce you to, our best referral partners to handle all the above.
Now think of tax minimisation this way.
All entity structures are designed so that eventually at one time or another past and present profits are paid at individual nominal rates for tax purposes. (The higher of all the tax rates)
You are afforded the privilege to pay reduced tax amounts on profits and store them in either a company or a superfund over time, should you elect to. But eventually those profits must be released out to individuals and paid at the individual’s tax rates. Credits for the discount taxes paid in the company and superfund are used to offset the tax liability in the individual’s name. You with me so far?
For business owners in the trades and construction industry, and taking reference from current tax legislation, we believe a company is the best vessel to run your business from. In addition to this, we utilise and interlock additional trust’s, companies and superfunds to create a legal corporate web that ensures we achieve our objective of maximum asset protection and minimum tax liability.
If your corporate structure is set up correctly, you can legally shift profits among your related entities and to family members to reduce the total amount of tax you pay on your business and investment profits and as an added bonus, to separate your pooled profits from your highest risk asset (your business)
If you believe that you are not currently running an optimum corporate structure for asset protection and tax minimisation, fear not. If your business satisfies certain criteria, you are able to utilise concessions to re-structure your business without any tax implications.
Want to learn how we can help you more? Simply leave us a brief message here or better, yet schedule a free, no string attached consultation with us here at a time that suits you. We are flexible, both with our time and how we meet with you. So, if you cannot make it too our office, then we can come to you, no problems at all, or better yet, we can set up an online meeting so you can discuss intimate details about your business and finances from the comfort of your own home. The decision is entirely yours.