We are a group of 6 friends considering buying a farm with significant growth opportunity. All 6 of us are employed full-time and so are our spouses.
Wondering if we should set up a company (as suggested by the real estate agent) or a trust? I understand that the CGT rates are lower if it is a trust and also that company assets can be sued in an unfortunate situation.
Thanks in advance – Any advise or opinion welcome.
There’s no cut and dry best option for a structure – you’re going to need to get specific advice from financial advice, lending and tax perspectives.
Exit planning and buy/sell agreements are very common in these arrangements, particularly with farming assets. Don’t short change yourselves by relying on an internet forum (or a real estate agent) to tell you the best structure – engage with a business/agri experienced financial adviser and accountant.
If you need a recommendation feel free to send me a private message.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Why ask a real estate agent?
You need specific legal advice on this – not from an accountant, but a lawyer. No financial advice needed as there are no financial products involved.
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
