The choice of an appropriate business/investment structure is critical. It is important to make the right decision on an appropriate structure initially prior to commencing an business.in order to maximise your returns and at the same time minimise the legal and economic risks.
The most commonly used structures are:
- Sole traders
- Unit trusts
- Discretionary trusts
- Self-managed superannuation funds
Furthermore, Important factors to consider in choosing a structure not only about tax efficiency but also asset protection and estate planning etc.
Regulatory requirements to be considered for starting a new business:
- Registering a business in required form with different government department
- Registering a Business Name
- GST, ABNs and TFNs
- Withholding tax
- State Government Licenses
- Council Permits/Requirements
Buying/selling a business:
Some areas to keep in mind during your due diligence when you are considering to buy a business:
- Profitability of the business
- Assets and Liabilities
- Permits and Licenses.
- potential legal issues
- Customer base
- Analyse the trends.