Hi,
As a newbie i am wanting some information about the best way to setup a partnership with my father.
We are looking at a him money/me time partnership and we don’t know the best way to go about it.
Do we just get an abn with partnership details (if so how does this affect reporting and taxation if we are yet to do any deals)
Would it be better to start a company for our investments, which would give more flexibility and investment power given the money will be all his?
I understand there are far more regulations with a company and would this be less viable for a newbie?
Hope you understand all that and someone has some ideas.
Thanx
CathSince its your dad, why not start simple and just buy a property jointly. However, you should agree at the begining on who does what, and how much each of you will put in etc. Look at the what ifs – ie if either of you wants out, what do you do, sell, buy out the other partner, bring in a new partner etc. It is best to write these things down.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
Hi Terryw,
Thanx for the reply.
My problem with buying jointly is i have a low income and three dependants which i thought would work against us for finance, I’m unsure as to whether the same applies with a partnership I’m guessing now it would be as it’s similar to a sole trader in that your income/assets are the security.Sorry like i said i’m new to all this.Cath
if that is the case, maybe your father could buy the property in his name and you have a separate agreement concerning costs etc.
If you go on title, then your income and situation will have to be taken into account by the lender. It still may be possible however.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
Hi Terry
A seperate agreement sounds good.I will have to explore it more as for now that would be fine but i am unsure as to how to split profits down the track given that my side of the partnership would be time investment only.Also we wish to make it a going concern and want to do it right from the start.
Thanx again for your advice i will look into it.have a look at http://www.lawcentral.com.au they have an agreement available there for people buying property together. You can register for free and get access to all of the tips.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]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
Terry,
Thankyou so much! I will check it out.
Cath
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