Getting your business structure right is so important.
It’s often underestimated how important the right business structure is! Paris Financial is a tax specialist in this area. Our small business tax champions will review your business structure regularly to ensure your business is structured to succeed.
Why is it so important to regularly review and assess your business structure? The answer is simple; life changes, businesses grow, profit margins change, as do partnerships and owners. Your business needs to be reviewed regularly to take into consideration your current position and your goals and planning moving forward.
We don’t just stop at your business, our tax specialists also look at your personal financial position, and will recommend structures to grow your private wealth and provide asset protection. Our small business tax champions believe that your business success and private wealth are one in the same, so we take care of both.
A family trust is also known as a discretionary trust. It is a fantastic trust structure for single-family businesses. It’s main benefit for business is the ability to distribute the income earned from the trust. It is also offers asset protection for both you and your business.
Hybrid Unit Trust
For a business that involves more than one family and some of the key people are working in the business more than others, a Hybrid Unit Trust is a sophisticated, well-balanced structure. This is a complicated structure, but one of its’ major advantages is that it can fix parties ownership in the business while maintaining full flexibility of work arrangements.
This is a great structure for partners in business. Partners hold a fixed number of units and so they receive a fixed proportion of income per year and this is set out in the trust deed.
A Private Company is the simplest business structure of all the possibilities listed because the entity is taxed for it’s yearly income before there are distributions to the Partners and Owners. This structure does, however have some major problems with flexibility and when it comes time to sell your business.