The start of a new financial is a great time to review your business structure. Below are some common situations where a review of your business structure may be beneficial:
Business and investments owned by same entity
If you own a business and also hold commercial property or other investments in that business entity you are potentially exposing these investments to litigation. Should your business be sued for some reason, or even fail, these assets can be sold to satisfy creditors. Holding business and investment assets in separate entities is an effective way of minimising this risk.
Owning a commercial property
If you own a commercial property (that is a property that is used for business or commercial purposes) you may be able to transfer this to a self managed superannuation fund and obtain significant tax benefits.
If you are thinking about or unsure if you should change your business structure, contact us and we can help find the best option for you.
by Scott Sharp
Scott is a Senior Accountant at Insight Accounting advice. He has a Bachelor of Commerce and is a registered tax agent. Scott’s experience covers all facets of accounting but he specialises in small businesses and SMSFs.
The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.