Hi there,
Have a question about business structure. What is the better option, out of a trust or a P/L company.
I would like to setup a legal entity to put my properties under, which are owned in joint with a friend. Just wanted to know which is better in terms of protection of those assets in the instance where legal action is taken against me.
Also which entity is the more tax effective option when the property is in joint ownership.
[
] Cheers!Seb
Hi there,Have a question about business structure. What is the better option, out of a trust or a P/L company.
I would like to setup a legal entity to put my properties under, which are owned in joint with a friend. Just wanted to know which is better in terms of protection of those assets in the instance where legal action is taken against me.
Also which entity is the more tax effective option when the property is in joint ownership.
[
] Cheers!Seb
I’m not an expert but I am the beneficiary of a trust set up to protect assets. Generally a trust is safe for assets but there are some grey areas which need to be talked through with experts. Unfortunately experts can cost a fortune. Our trust cost $$$ to set up. I can give you the name of the company in Sydney where I did it. He’s a nice guy and will be quite chatty if he’s not too busy.
Sebastian
One thing to consider if you are holding property for eventual resale, there is no 50% Capital Gains Tax Discount in a P/L company. (Even if there was, you can only get money out of a company as wages or dividends and you are taxed personally on both).
The 50% CGT Discount passes from both a partnership and a trust to you through a distribution. However, each case is individual so check with your accountant.
For added legal protection you may be prepared to accept the loss of CGT Discount in a P/L company as a consequence
Check out
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1359
This might answer some of your questions….If not post more and we will see what we can clear up..
Cheers
Pete…Beware of the dreamtakers…
] Cheers!
The topic ‘More on Business Structrure’ is closed to new replies.
