All Topics / Legal & Accounting / Does DT need a business name to invest in properties?
Hallo all
this is my first post, hope some good accountants/lawyers can help with this question.
my wife and i intend to set up a family trust with a company as the trustee to invest in properties.
we have spoken with an accountant and have learned quite a few tips.
however, when i asked whether the trust needed a biz name, she said yes.
i wonder if the trust is simply investing, ie buying and holding onto IPs, it is not trading, is it? if it is not trading, does it still require a biz name?
we are in WA.
could any accountants and/or lawyers help? please
pierre
You don't have to have a business name. Your loan and bank statements would show XX Pty Ltd ATF XX Family Trust. For what you are proposing, a business name would just be an added expense.
thanks Dan, that's what i was inclined to think, dunno why the accountant say i needed a biz name
I agree with Dan.
Also bear in mind before you make the jump that many lenders are tightening up credit policy when it comes to Trusts and Corporate Trustees.
The old days of getting a nice interest rate discount or paying a reduced application cost have almost all gone where there is a Corporate Trustee involved.
Many Accountant dont take this into consideration but when you add 0.7% interest rate margin to the total loan amount because you have used a Pty Ltd Company Trustee can make it expensive and less atractive.
This is not to say that rate discounts are not available but are certainly limited to a few lenders.
Richard Taylor | Australia's leading private lender
Thanks Rich for the tips on finance
i was confused between biz name and ABN, the accountant was right. but thanks for the replies,thank you Steve for this brilliant forum!
pierre
Trusts have a name, eg. smith family trust. But remember trusts are not separate legal entities, so it is the trustee's name that goes on every legal document. There is no need to register a business name unless you wish to use a different name for trading purposes. eg your trust may be running a sandwich shop with the trustee being ABC Pty Ltd. If you wish to call the business ABC Pty Ltd, there is not need to register a name as you are using the business's legal name, but if you want to use ABC sandwiches, then you will need to register that name.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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