Hi all,
This might be a very basic question but would like to ask this question here with the hope of getting some great answers here.
I am setting up a business (company A) and would like to use most of its income to buy property in company/Trust B. This is mainly to keep business and investment separate and have better asset protection and also have better tax outcome. So could you please help me to understand of my options for using company A income to buy property in company/trust B.
Regards
Amir
I am not sure what you mean exactly but Company A could lend money to Company B which could buy the property. Company B could buy the property without a loan using Company A’s money – thereby creating a resulting trust. Company A could pay income out to its shareholders who could lend to Company B to buy property.
There are lots of legal and taxation issues to consider.
And this would not prevent Company A from being taxed on its income either – which seems to be a common misunderstanding.
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
Hi Terry,
Thank you for your response.
Reagrds
Amir
Profits are just that, profits, and can be used for whatever you like.
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
If company A is going to invest in company B, it is better to make a C company. Offshore companies, which used to guarantee high security to foreign investors’ assets and offer tax benefits, have changed their policies drastically to avoid being under international sanctions. Nevertheless, offshore companies have managed to adapt to stricter international rules without reducing the volume of foreign investment and business attractiveness. Considering the peculiarity of the American states in terms of the differences in local laws, we can distinguish seven states with the most attractive conditions for starting a business. Florida factoring companies for business are currently developing projects in Florida, but there are bright sides for Nevada, Alaska, South Dakota, Wyoming, Washington, and Texas. A robust corporate law structure can also be noted in Delaware. These are the best places to do business.
Nevertheless, offshore companies have managed to adapt to stricter international rules without reducing the volume of f
You don’t know what you are talking about!
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
Using a company’s business income to purchase property in another company can be a complex process. Here are some general steps you can follow:
Determine the Purpose and Benefits of the Investment: Before you invest company funds in property, consider the purpose and potential benefits of the investment. Are you investing for long-term gains or short-term profits? What are the risks involved, and what are the potential returns?
Identify the Right Company and Property: Identify the company in which you want to invest and the property that you want to purchase. Conduct thorough due diligence on the target company, including its financials, management, and operations.
Formulate a Plan for the Investment: Develop a detailed investment plan that includes the amount of funds to be invested, the structure of the investment, and the expected returns.
Obtain Legal and Tax Advice: Consult with legal and tax professionals to ensure that the investment structure is legally and tax compliant. Consider the tax implications of the investment, including potential capital gains taxes and property taxes.
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