Legal Structures
(Company/Trust/ Partnership/Super)
At Cyngler Kaye Levy Lawyers we have been advising clients on the best possible legal structures for their situation for over 20 years. Our lawyers have a wealth of knowledge and experience in Commercial Law.
A review of your company/trust structure will allow you to determine if you have the best structure for your needs with respect to:-
- Land Tax
- Income Tax
- Stamp Duty
- CGT – Capital Gains Tax
- Risk Management
- and many other duties, taxes & obligations.
Regularly reviewing your structure can alleviate bottlenecks later on.
There are many options to choose from when setting up a business structure eg:
- Company
- Unit Trust
- Discretionary Trust
- Partnerships and Joint Ventures
- Superannuation Fund
- Franchising model
TRUSTS (Discretionary & Unit Trusts)
Trusts can be used in a variety of ways to distribute income to business partners and/or family members. Our experienced Business Lawyers can advise you which type of trust is best for your needs.
Your existing Trust Deed may need to be reviewed in light of Commonwealth Legislation and the High Court of Australia decision in Bamford v Commissioner of Taxation [2009] FCAFC 66, the “Bamford Case”.
The main issues in the Bamford Case revolve around the definition of “net income” and the ability of the trustee to a distribute beneficiary’s proportionate entitlements. This includes Capital Gains Tax.
We also note that the Government recently amended the Income Tax Assessment Act 1936 to allow only certain classes of income to be streamed to selected beneficiaries, namely Franked Dividends and Capital Gains Tax.
Due to the above we recommend that your trust deed be reviewed to ensure that it is both compliant and provides the greatest flexibility regarding future income distributions.
We can draw up a simple Variation of Trust Deed to bring your Trust in line with the new High Court decision.
Succession planning is necessary if you intend to sell the business or transfer to another family member in the future.
If the business is growing, you may want to think about opening more stores/outlets using a franchising vehicle. See our section under Franchising for more information.
Please do not hesitate to contact our experienced Business and Commercial Lawyers on +613 9523 8811, request a cost estimate or email an enquiry. |
