We are looking at setting up a partnership with another couple and can not afford a company structure at this time. if we regester a business name (NSW) and do a 4 way split what is the better structure to have. can a NSW business own property etc in a different state?
we would have contrats etc to protect each other, how can we protect the business from litigation the best way, we understand that this would be opinion only (opinions are like armpits. everybodys got a couple and after a while they may smell)You can not afford a company structure? It only costs $1,000!
The main issue, in my opinion, is tax beneifits, not litigation protection. How many businesses get sued when operating an investment business? Not many. It is not a business that requires insurance.
My suggestion is go for a company or trust structure.
Cheers
Stu
I agree with Stu. Spend the extra and do it right the first time. The tax benefits will pay for the extra cost quickly.
Regards,
SiI also agree with Stu Wemyss. Do a forum search on unit trusts, and why you probably shouldn’t use a company to buy real estate…
TerryTerence McMahon
HomeWin
FinanceLighthouse,
Using a company or trust may neutralise your tax benefits if the property is negatively geared. Unless you use a hybrid trust which is more that $1,000 and not all hybrids pass the smell test.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
