Why structuring matters
The term “structuring” itself deals with how the investment is held – who owns the investment and who can receive the benefit of the investment. The failure to properly consider how an investment should be structured can have costly consequences – ranging from being unable to effectively plan your tax, to incurring increased duties and taxation on the introduction of new equity and being unable to effectively dispose of the investment.
When considering appropriate structures, there are a number of factors that should be considered – perhaps the most critical of those being asset protection, taxation flexibility and estate and succession planning.
Depending on the nature of the investment, consideration may also have to be given to the regulatory requirements of ownership.
With options ranging from self ownership/sole tradership through to partnership, company and trust structures (including discretionary and unit trusts), there is a wide variety of structuring options available, each with a range of advantages and disadvantages.
For existing investments, consideration can also be given to restructuring in a variety of circumstances.
Ballantyne Law Group takes the view that structuring is a matter that should involve input from the investor, their accountant and their legal advisor, as each will bring a different perspective to the process. We work closely with our clients’ accountants to ensure that the most effective, and cost effective, structure is considered.
Please contact our commercial law team on (07) 5606 7332 to discuss your structuring requirements, or any other legal matter.