Corporate Costs

I am looking at starting to establish myself "properly" in this game and talked to a solicitor the other day who said he would set up a Company and a Trust for $1650.Is this a fair amount. I would love to find out what others charge, etc. to see if these costs are reasonable or not.

Enjoy

AD

Hi AD

the price you have listed is the going rate for a company and a trust.

normally around 900-1100 for company and 500-700 for a family trust.

Andrew,

The business that we use to establish entities for our accounting clients, together with an outline of their pricing, is http://www.shelcom.com.au/services.htm

You might also expect to pay about $400 (2 hours) of time for your accountant / lawyer to fill in the necessary paperwork and ensure that the documents you receive are correct.

Accordingly, the $1,650 you were quoted does not appear to be unusually large.

Regards,

Steve McKnight

Steve, or others!

For ASSET PROTECTION, the way to go seems to have family (disc) trust & have a company as trustee.

Q:

1. To achieve the above, does it mean one has to setup one company AND one trust ?
2. Can you go to ANY accountant to setup trust/ companies ? can you DIY ?
3. What is my role in this corporate thing? As director / or appointor ? or what ? also I read that if the setup doesn’t done properly the appointor can be removed – is it possible ?
4. What is the cost of transferring initial asset into trust ? stamp duty?

Cheers,

Hey CY,
I'm no Eddie the expert but I just did this with my accountant.
Please check with your Accountant as they will know best !!

I think setting up a company, etc depends on how far you want to go. Doing one or two outside a company won't kill you but if you get serious then there are (depending on circumstances) great options in setting up a structure. I got a solicitor to set up my company and trust and I think any acct or Sol. can do so. Ended up costing me $1270 plus about $110 for the Acct. to do a few bits. (Having friends helps).

I am the sole director as my wife owns out family home solely....nicely separate.

As I have already bought two properties prior to this company I will have to pay Stamps again to move them into the trust.....such is life.

We need the Accts here Steve or Dave !!

Hope this Helps

Enjoy

AD

Hurdles are merely stepping stones for thwe successful.

Hi CY & AD

One way of doing this is to have BOTH a company and a trust.

• You and business partner/s are directors of the company.
• The company is the trustee of the trust.
• The company purchases properties in its' capacity as trustee of the family trust

advantages:
1) Asset protection: There is some minor level of protection as you can resign as directors and appoint someone else if there are problems
2) Succession: you can resign and let your children take on directorship (thus control) without any real costs. ie probate, stamp duty, sell then buy costs, etc, etc
3) You are in a position to give personal guarantees to lenders when sourcing funds.

disadvantages:
1) set up cost
2) running cost
3) generally higher finance costs to companies than individuals

Howzat ?

cheers

the Bruce

Hi,

I thought that it would be appropriate to point out that correct structuring will be a feature topic at the upcoming seminar.

Chartered Accountant and tax expert Paul Harper will show you exactly how to set up a multiple entity structure that is both tax efficient and also appropriate to protect your assets.

Paul will show you the correct structure (in fact the exact structure that David and I use) and then I'll show you how I make use of it to secure unlimited finance.

Book your seat early - call the office on 1800 660 630 to find out more.

Regards,

Steve McKnight

I have recently been in contact with an accountant, who quoted me:

$1430 Company trust
$1100 Trust

Total $2530

Looking at the postings here, one would suggest these prices were considerably high?

Cheers

Rob

We've just set up a family trust for under $500 and were quoted approx $1000 for the company part.

From a borrowing perspective, it may be wise to only have one director of your company as this will limit your guarrantee. (Directors must guarrantee loans in the company name.)

Terryw
Discover Home Loans
North Sydney
terry@discoverhomeloans.com.au