Business Structuring and Asset Protection
Appropriate business structuring allows you to minimise tax, increase efficiency, and securely protect valuable assets from risk.
Getting your business structuring right from the beginning is important and often critical. Some changes are hard or impossible to make in the future.
Setting Up Companies
Business structuring and asset protection starts with choosing the right entity. Incorporate a company as your primary trading entity to benefit from the low corporate tax rate, and limited legal liability.
Setting Up Trusts
Establish a Discretionary Trust (also known as a Family Trust) to give you the greatest possible flexibility to minimise your overall household tax liability from year to year. Set up an Investment Trust to acquire valuable assets, either on your own or with other co-investors.
Risk Identification & Management
Evaluate key sources of risk and manage them appropriately through smart legal structuring, entering into bulletproof contracts with customers/clients and other third parties, and taking out appropriate insurance.
Isolate valuable business assets (such as Intellectual Property) from trading and other risks through dedicated asset holding entities which grant leases or licenses to trading entity. Quarantine personal assets (such as real estate or other investments) from business risks by moving them into no-risk or low-risk ownership structures within the family unit.
Related Party Loan Arrangements
Implement loan arrangements between related entities (usually owned by the same person or family) to lock away cash or equity held in valuable assets and protect them from business and insolvency/bankruptcy risks. A commonly adopted structure is a gift-and-loan-back arrangement to protect equity held in the family home or other real estate assets.
Long-Term Wealth Creation
Create long-term wealth by making smart structuring, tax, and asset protection decisions which are geared towards achieving long-term objectives, such as becoming financial independent, or retiring at a specific age.