Why is Structuring and Asset Protection Necessary?
Ensuring you have the right structure in place for your Management Rights business can drastically change how your business is taxed and how well your assets are protected. If you are purchasing a Management Rights business you will need to have your business structure established before you sign the sale contracts or can obtain finance.
Determining what is the best structure for your circumstances, requires both legal and financial advice from experts in the Management Rights industry.
For many Management Rights buyers, establishing a company as trustee for a family trust is often the best structure to buy the business, while the residence attached to the business is bought separately in the buyer’s own name to take advantage of stamp duty concessions. Although this structure is very common you will nonetheless need to have your personal circumstance reviewed to know if it is the best structure for you.
If you wish to have greater flexibility in how you share the ownership of your business, or how you grow or shrink your business investment in the future, using a family trust to own the assets may not be the best fit for you. In those circumstances a simple company with flexible shareholdings, or a company acting as the agent for a partnership may be a better option. In certain circumstances you can also use a self-managed super fund to invest in a Management Rights business.
The Management Rights team at Small Myers Hughes can help you and your accountant to determine what is the best business structure for your circumstances. From family trusts and self-managed super funds, through to complex partnership agreements, our team can guide you through the process and prepare the documents you will need for your business.