Monday tip time this tip today is about business structures. remove when you have a business, you need to have it set up either as a sole trader or a trust, a company, a partnership, and then all the different levels of different trusts as well. However, a lot of times the business owner will set his business up with not a lot of background reasoning behind it.
I had a client come to me the other day to ask for assistance in helping him set up as a company. But before I went ahead and helped him with that, we had a very very long conversation about why he wanted to become a company.
This is a very important tip because I have clients in the past come to me for example a client came to me and his business set up is a trust. I was asking him who are other people in the trust to disperse his profits to and he said it’s just me. So I said well why you set it up as a trust and he couldn’t answer the question there.
They may have been a great reasoning behind it. So my tip is to get yourself informed about why you are setup the way you are. some people are in companies because they have assets that they need to protect or they have other directors in place. Some people are in partnerships because they are in a partnership with another person.
So it’s really important that you know the WHY, no matter what business structure that you have. There are reasons behind why you have that structure.
So the tip for today is to get have a conversation with either somebody like myself who can give you some advice around that or your accountant or tax agent and make a decision based on things that are relative to you and your business future.
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Angelique is the Founder and Managing Director of Flexible Financial Solutions based on the Gold Coast, Queensland.
With over three decades of bookkeeping experience, and qualifications in Small Business Management and Financial Services, Angelique has an understanding of all aspects of businesses from the ground up. By cutting through complex “numbers” jargons and breaking down complex terminology to help her clients gain better understanding, Angelique grew her current loyal client base from humble beginnings in Queensland.
What started as a one-woman practice has quickly expanded to a team of professional bookkeepers and BAS Agents. Today, Flexible Financial Solutions care for clients from many different parts all over Australia and have grown to become a part of ‘the family’ of many Australian businesses.