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Introduction
Key #1 - Keep Things As Simple As Possible
Remember that set up costs & ongoing costs should always be taken into account. Generally, the more complex the structure, the more expensive it is to set up & run.
Key #2 - Keep Your Business Separate From Valuable Assets
Key #3 - Separate Risk From Individuals
Where you have a family group, again for risk purposes, consider only one spouse being the director of operating companies and the other non-director spouse holding the passive & more valuable assets.
Key #4 - Trusts
If you use a trust, where risks are high (i.e. not an investment trust), consider using a corporate trustee so that you are not held personally liable for the debts of the trust.
Key #5 - Get It Right First Time
Thinking ahead & having flexibility with your structure will save you time, money & in some cases unnecessary tax. You need to consider whether your needs could change.
Key #6 - What Is Your Exit Strategy?
The right business structure allows for your future exit plans. A family trust might not be as good as say a company in certain circumstances where the owner is trying to exit the business down the track. Before setting up, these plans need to be considered.
Conclusion:
Before you set up your entity(s), consider the above 6 keys to assist you with your decision. Whilst it is hard to get exactly what you want, by considering these points you will be well on the way to selecting the right business structure given your specific circumstances. This will save you an enormous amount of time and money in the long run!
