Has anyone had any experience with setting up an Entity for doing a JV with a business partner? This will be a Residential development and my business partner is coaching me as this is my first development. Keeping in mind of course 2 main reasons for the entity to protect myself and tax minimisation. Perhaps there may be a good Accountancy practice that someone may be able to recommend.
Warm regards
Adrian
Adrian
There are many ways to do this so it all depends on what you are going to be doing.
Is it going to be an one off or ongoing relationship. ?
Are you going to both putting in equal amounts of capital and have equal shares in each property.
Is your partner being paid a wage out of his ahre or merely a % of the profit.Other consideration is how you are going to borrow the funds.
A new entity with little or no experience migh struggle to obtain higher LVR funding dependant on the size of the project.Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
It’s great that you are thinking of this in advance.
I’ve seen a number of friendships broken up when joint ventures went wrong.
Only yeserday a client told me how he and an ex joint venture partner were in court because of something his partner bought outside the joint ventute, which went wrong. But because of thier partnership in another entity, this client was being sued for $110,000.
Yes you need an accountnat, but to set it up right you also may need a solicitor.
If you want to bring yourself up to speed on this and not pay a fortune in consultants fees educationg yourself, solictor Rob Balanda has come up with a great CD set – Joint Venture made simple
You can details here. I recommend it….
http://www.propertyupdate.com.au/pages/Clauses-Simple-Series
Michael Yardney
METROPOLE PROPERTIES
Publisher of Australia’s leading property e-magazine.
Join over 20,000 readers.
FREE subscription http://www.PropertyUpdate.com.au
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