If you are starting a new business or your existing business is paying too much in tax, it is essential that the business owner/s seek expert accounting and legal advice concerning the business structure and asset protection.
Running a business as a sole trader or in a partnership with your spouse may be suitable when the business is relatively small and not earning a lot of income. However, personal liability in case of any debts or court actions can put the business owners’ personal assets at risk (e.g. family home).
To separate your assets from business risks and to create more income distribution flexibility, you must ensure that your business trading entity is separate from the asset holding entity.
Once the risks are separated from the assets a licence agreement is established for the use of Intellectual Property (IP – trademarks, logos, business names, etc.) and service/rental agreement for the use of other assets (e.g. plant & equipment, motor vehicles, etc.).
If the business trading entity fails, the assets are protected from any potential legal actions taken against the trading business entity.
Your business is probably one of the most valuable assets, so careful and responsible business structure planning can save the business owners a lot of money.
Setting up the right business and asset protection structure can be quite complex, so to protect your business and your family assets make an appointment to speak to us today.