How are you structured?
Are your personal assets (family home, car, boat, caravan, shares, cash at bank etc.) at risk or protected if your business was affected by bad debts, was sued, or you couldn’t pay your creditors?
No one likes to think of the worst-case scenario, however, if you are in business you are silly if you don’t think about the worst case scenario and how it could impact not only your business but your family and personal assets as well.
If you are trading as a sole trader or in a partnership as individual partners you are trading with unlimited liability. Unlimited liability means that the business owner/s are personally liable for any debts or legal troubles incurred by the business and vice versa. In the event, the business fails and has outstanding debts creditors may come after any other assets the owner possesses.
If set up correctly, structures such as a discretionary trust or a company can offer the greatest level of asset protection, or limited liability as well as income splitting opportunities to minimise the amount of tax you pay.
Don’t you think it’s time to get expert advice to protect your assets and minimise tax?
N Cook & Associates are expert business and tax advisers and are here to partner with you today. Get in touch – firstname.lastname@example.org or (07) 3805 5740.