+1 to the info from Jeromy, Andrew and Adrian. We do a lot of trust set ups for entrepreneurs. To follow on from what Adrian mentioned, setting these things up are not expensive or complicated - and the sooner you do them, the less expensive and complicated they are.
Australia has an insidious taxation regime with respect to corporate ownership - if you are serious about being in business for the rest of your life, you should at least school up on what to do and when to do it. Don't give big chunks of capital away to the ATO, please, I beg you. It will put to better use in your hands. The big thing to remember is that a "tax event" occurs when assets move. So if you own shares personally, and want to move them to a trust later, then it will be a "tax event" - so just make sure you do it before there is any demonstrable financial value. Always happy to discuss these sort of things with anyone who needs a bit of specific direction from a legal perspective. Kurt Falkenstein k...@brigeadvisory.com.au +61405235258 On Oct 9, 11:32 pm, Adrian Bunter <adrian.bun...@gmail.com> wrote: > Get some appropriate tax advice. (This post isn't tax advice!) > > There are lots of things you can do, and lots of things you can't > do... > > The other thing to remember is you can plan for the current tax > situation, but you can't ensure that will be appropriate for the > future. > > A couple of points: > - you can set up a trust with corporate trustee for <$1,000. It isn't > expensive > - you would use the trust to hold the shares in your business > - if you are going to use a trust, you should do it prior to setting > up your company, because if you try to transfer it later you could > stuck with a large tax bill > - from a trust, you CANNOT distribute dividends/gains to your super > fund (well actually you can, but you will pay the top marginal tax > rate on the full amount) > - if you are an Australian resident, don't try to hide it in a foreign > company or foreign trust (it doesn't work) > - if you are Australian and you move somewhere else that doesn't have > CGT (ie become a non-Australian tax resident), you will need to pay > tax on the gain in value when you leave, unless you elect to defer it > (which defeats the purpose) > - there are certain circumstances where you can make much more than > $6m on the sale and still obtain the small business tax discounts > > Final point... don't focus on the tax situation (but make sure it is > setup at the start), focus on building a huge business and selling it > to the best buyer. > > Regards > Adrian -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
