Business Structuring and Tax Planning

Ensuring your business and personal affairs are structured into the appropriate legal entity structures (such as a sole trader, partnership, company, LTC or trust etc.) is key to ensuring your present and future tax effectiveness, profit distribution, wealth maximisation and asset protection.

A review of your current business structures and appropriate tax planning is timely as we approach the start of the next financial year and in light of the new Government’s tax priorities.

Changes in Business Circumstances or Investment Decisions

If you can foresee any changes to your business for the year ahead – such as a drastic change in revenue, potential business sale, purchase of new assets or you are currently contemplating any investment or refinancing options, now is the time to be discussing these matters with us so that we can advise you as to any structuring and tax planning considerations that need to be taken into consideration in your decision making.

Too often we see clients making decisions without alerting us first; often the first time we are made aware of such is in the preparation of year end financial statements and tax returns.  Accordingly, we often pick up costly mistakes that could have been avoided had discussions been had with us first and in the aftermath our ability to help make sure you are not paying more tax than necessary becomes limited.  An example of this is where an investment property is purchased without regard to the entity structure under which it is purchased.  Taking the time to consider your options before entering into an agreement can be the difference between being able to make interest deductions on your mortgage or not.  Structuring and planning for these tax implications can save you thousands of dollars in tax.

Starting a Business

Similarly, if you are contemplating entering into business, now is the perfect time to be getting your business structures set up so that you are ready to start FY19 from the 1st of April 2018.  Getting your business structures right from the start is best as it becomes costly to change later down the track.  For example, having to prepare part year financial statements and tax returns for two entities rather than one, or having to redo your banking and loan facilities to set up bank accounts and loans.

Changes in your Personal Situation

Changes in your personal affairs, such as a change in marital status, can also have a bearing on the way in which your business affairs are structured.  We will recommend and structure your affairs in a manner that balances your business and personal objectives together with your commercial requirements and the cost of compliance.

Get in Contact

Business structuring and tax planning is an ongoing process that can save you time and money.  We encourage you to keep the above in mind and please make sure you talk to us about changes in your circumstances and any updates to your long-term goals so that we can plan to help you achieve them.  Please feel free to make an appointment to come in to discuss or review your affairs.