In this edition:
A variety of issues need to be considered when selecting a business structure and these will vary according to each particular case. Tax is an important concern, but should not be the main reason for choosing a particular structure. A key consideration should be
asset protection.
So what is asset protection?
Roughly, it is about minimising exposure to risks in such a way that you may be able to protect assets to mitigate the damage if someone were to make a claim against you or your business.
Normally we want to ensure that:
Most families wish to protect their wealth, whether it be a business, investments or the family home, from the clutches of third parties.
When considering asset protection, the old saying: "Don't have all your eggs in one basket" should be applied. We almost always recommend that clients should hold separate types of assets and businesses in separate entities.
The best way to shield an asset is to have a number of defence mechanisms in place. These mechanisms may include:
By structuring, we are talking about the entity (or entities) through which you operate your business or own your assets. At a quite simple level, common structures include:
Ideally, there would be an optional, "one size fits all" structure for different types of ventures to suit all of us. Unfortunately, this is not the case, as each structure has its pros and cons and, ultimately, the best choice, in respect of a particular purpose, will depend on its particular circumstances.
At Goodwin Chivas we have a team of qualified professionals equipped to assist you in making the right decision. We have a deep understanding of the asset protection and structuring strategies available and the specific attributes of each option to determine if it suits your needs.
If you wish to know more about asset protection, please contact one of our accountants
Suite 401 29-31 Solent Circuit
Norwest Business Park
Baulkham Hills, NSW 2153 Australia
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P:
(02) 9899 3044
F: (02) 9899 1524
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