Chat Legal in Brisbane City | Lawyer & law firm

Chat Legal

Locality: Brisbane City

Address: Level 16, 97 Creek Street 4000 Brisbane City, QLD, Australia

Website: https://chatlegal.com.au/

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12.01.2022 So far, we have mainly focused on a single person investing. What are some issues to be aware of if there are multiple individuals or families looking to invest or operate a business together? ********************************************************************* If it is a joint investment then most of the time, a company would be the way to go, certainly if it is a way of a trading business. ... This is because a company can have multiple shareholders, so you can proportion the shareholding based on the percentage each investor wants to have in the company. If it is a passive investment, then probably the most common structure you would see if to have multiple trusts owning an asset in partnership. Each investor would set up their own family trust and then those trusts would purchase the asset as a partnership. Regardless of how you invest a critical consideration is putting agreements in place to ensure that future disputes between the investors can be resolved quickly and appropriately. The agreement could look at issues such as: agreements for ‘involuntary’ events such as what happens if a partner dies or loses capacity; and agreements for ‘voluntary’ events including when someone wants to retire, sell their shares or change the nature of the relationship between the parties. Now we want to get this agreement in place while everyone is getting along, not down the track when there has been a breakdown in relationship between the parties. Paying professional fees is not something anyone gets excited about, however, getting proper advice from an accountant and lawyer before you invest in an asset or start a business will often pay for itself many times over down the track by making sure that structure is getting the best possible tax outcome for the individuals, ensuring it offers sufficient protection for the personal assets of the individual and eliminating the need to take future steps to restructure. ... Think of it as an investment. The professional fees will eventually pay for itself down the track.

11.01.2022 Getting Structures Right from the Start "Why should we care about structuring properly from the start? Why not just do it one way now and take steps to change it at a later point in time?" **********************************************************************... This is a constant dilemma that business owners face. That is when they are starting up a new business, do they invest the time and money upfront to get a structure right, or do they just go off with something simple in the short time and then try to change that structure if the business becomes successful. There’s real benefit in trying to get the structure right from the start as both the Federal and State government does not make it easy to change a structure once a business is up and running and if a business has been running for a period of time and it becomes necessary to change the structure, there are both tax and stamp duty costs that can arise. There are also the associated professional accounting and legal fees to change the structure. While there are specific exemptions for certain types of business restructures, it is almost guaranteed to be a far more time consuming and expensive exercise that getting the structure right from the start.

07.01.2022 We have the pleasure in presenting at the upcoming Television Education Network's lunchtime online conference: Estate Planning Techniques to Protect the Citadel. Our topic of choice relates to business succession planning and the tax and estate planning considerations. Please feel free to download a copy of the paper to be presented on from our presenter's personal website (along with other presentation materials): https://dariuschats.github.io/