All Topics / Legal & Accounting / Company question
Hi,
I have just finished reading “Wealth Guardian” – which contains a wealth of information.
If I set up a company with my husband as director and myself as the sole shareholder, I realize that the book says my husband will act as guarantor for all loans.
My question is, if we want to increase our borrowing capacity – can I (as shareholder) also act as guarantor for the loans?
Thanks for the input.
Novice investor
Originally posted by crgiron:If I set up a company … Novice investor
If you are planning to invest in property, as opposed to running a development business, then you may want to consider other investment structures in preference to a company.
Companies can’t get the 50% CGT discount that individuals and trust beneficiaries can, potentially requiring you to pay significantly more tax on sale (quite possibly 48.5% if the gain is large enough and the number of shareholders is small).
GP
Hi
You really need to consider a trust stucture
Please e-mail if you want further information
Regards
AngYes you both could guarrantee the loans, but this may hurt borrowing capacity in the long run and create more risk if something goes wrong.
Terryw
Discover Home Loans
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
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