Hi there,
Scenario: I have a long term joint venture project with my friend, both of us agreed that open a Pty ltd. each partner hold 50/50 share. Of couse both of us are directors. The estimated profit, say, $40,000 each share pa in 1st Yr.and $20,000 increase increased pa for next five yr., and both of us no other income.Regarding to shareholders: we may use
1/ Personal Name – “No” addition cost, but max tax 48% [worried]
2/ Individual Family Trust-initial Cost $275+150stamp, dividend can be splited to my family members?[worried]
3/ Corpored family Trust – Initial Cost $2500, tax effect same as#2.[worried]
4/ Pty Ltd. – Initial Cost $1250, Tax effcet fiexed at 30%[worried]
5/ #2 + a pty Ltd.is one of the beneficiary (additional cost $1250)[worried]
6/ #3 + a Pty Ltd is one of the beneficiary (additional cost $1250)[worried]Any guys here have good clear mind ?[strum]
Your input welcome [inlove]Julian[worried][worried]
THERE IS ALWAYS A BETTER WAY!
Julian
I would use a trust and would imagine you only need an individual trustee. This is because you are only holding shares, and the trustee getting sued would be very rare. (Diff to property as the trustee could be sued if the tenant injures themselves etc). BUT check this with an accountant.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Contact a qualified “lawyer and accountant”.
If you try saving a few bucks getting advise via a general web site forum, it will cost you ten-fold.
— Michael
Originally posted by Michael R:Contact a qualified “lawyer and accountant”.
If you try saving a few bucks getting advise via a general web site forum, it will cost you ten-fold.
— Michael
I have a few good friends they are solicitor and accoutant, but in my many yr. buiness life, they often give me good advice but often wrong (ie not exactly meet the practical need). as you know, they are only dealing with their daily routine job just as you and me. they don’t know much other tricky things. They learned but sometime/always not skillful to apply in the real business world.
that is what i feel. but sometimes when we discussing in the forum, we may find something NEW AND CREATIVE.Julian [worried]
THERE IS ALWAYS A BETTER WAY!
I agree with Michael. Just use the forums to get some ideas, but don’t act on anything without getting proper advice.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Julian, if you set up another company to own the shares, yes it will be taxed at 30%, but you still will have the issue of getting the money out of that company into your own hands to spend…
I would think a trust would provide more flexibility to distribute the funds than through a company, esp if the income will go up each year…
Cheers
Mel
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