Hello,
I’ve got a couple of questions about Partnership structure and will appreciate your opinion very much:
– Is it possible to create partnership in proportion different than 50/50 (e.g. 95/5 or 99/1), which I believe is a default
– How the above arrangement should be documented? (legal documents, solicitor’s involvement?)
– How flexible (or not flixible) is the proportion of interest in partnership? Can the proportion of interest in partnership be altered at later stage, e.g. change 99/1 to 1/99?
– If the above possible (there is flexibility), how such change should be documented? (legal documents, solicitor’s involvement?)
– If partership required to be registered for ABN, will the proportion of interest in partnership be recorded at time of application for ABN and is it possible to change it later (for the same ABN)?
– Is it possible to change from Individual (Sole Trader) to Partership if ABN was originally issued to Individual (Sole Trader)?Thank you very much.
Leonid
Are you talking about in business or in a property?
If it is in a property do you mean one property or multiple properties.
ABN belongs to an entity, if you change the entity you need a new ABN from my understanding.
Byronent
Adelaide SAMaybe you should look at a unit trust and/or partnership of discretionary trusts. You would need a partnership agreement either way, http://www.lawcentral.com.au for an example.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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
Hello,
I guess my question was more about business situation than property since, to the best of my knowledge, changing “proportion of interest” in property might be considered as change of ownership and trigger stamp duty.
And main things that I would like to find out is how to document creation of partnership with different proportion of interest in partnership (e.g. 99-1), rather than equal (50-50), whether it is possible to change proportion of interest in partnership at later stage.
I hope someone on the Forum will have additional information to put me in a right direction.
Leonid
Terryw,
Thank you for the link. I will be looking closer at http://www.lawcentral.com.au.
Regards.
Leonid
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