Every business needs a business structure. For the most part, accountants and business advisors tend to look at this primarily from the perspective of tax efficiency and administrative convenience. However, there are other factors which need to be considered in order to choose the best business structure for you. These include:
- Asset protection
- Long term control
- Exit strategy
- Enforceability of arrangement between the co-owners of the business.
It is easy to think that you fix these other issues down the track after the business has matured. However, fixing a business structure might involve paying transaction costs like capital gains tax and stamp duty. Investing a little bit of time and resources in planning things through at the beginning means that you can avoid these types of cost-shocks down the line.
At Your LegalHQ, we specialise in advising clients on their business structuring needs so that they have something that will endure throughout their entire business life cycle.