On today’s episode of Get to the Contest Small Business Podcast, we talk once again to Fox Group’s Jeremy Fox as he shares his thoughts on the right business structure for you. Here are some key takeaways from our talk:
What are we looking to achieve via a business structure?
Ultimately, we need to know the business structure that will fit us for asset protection and tax. We need to identify the main thing we are looking to achieve, the assets we are looking to protects and making sure we get the right relationship between our business and tax.
Keep it simple.
All structures carry with them an element of cost, either up front or ongoing. So, my experience is making sure you understand your structure & get good guidance. If possible, keep it simple and have your accountant give you a mud map explaining the various parts of your structure.
Understand the Pros and Cons
There is no best structure. There are pros and cons around asset protection, cost, ongoing cost, commercial considerations, and tax. If you understand all the pros and con, you can make an informed choice.
Speak to an expert.
Take the time, speak to an expert. You may actually find that someone that knows what they're doing such as a really good business accountant can actually deliver a hybrid which will give you the best of both worlds and all the upside with nominal downside of your structure.
Understanding the goal right from the start.
It is critical to know what you are trying to achieve with your business right from the start. Understanding the nature of your business is very important because it will make you choose the structure which best fits it. Questions like: Do you want to take in equity partners in the future? Are you going to be growing rapidly, are you going to be selling down the track? Make sure you talk to your accountant to get the proper advice and to avoid major making the wrong structure for your goals.