Another dimension to Patrick's comment: if you're planning on moving to the US to raise venture money for your business, also be aware that what looks different and weird will not be appreciated here. Your investors will be investing in YOU as an entrepreneur, and they want to see YOUR name on the capital table, not some wacky vehicle they've never heard of before. I don't know how *much *of a deal breaker this is, but as a startup guy your ability to invest in a special purpose vehicle which will be recognised, such as something in the Virgin Islands or Jersey, is beyond you - this stuff isn't cheap and you need to focus all your firepower on surviving unfortunately.
On Mon, Oct 10, 2011 at 22:28, Patrick Collins <pcolli...@gmail.com> wrote: > Just a side note for those 1% of you who decide to build an Australian > business holding your shares in your fancy trust and then want to move to > the US. Beware! That trust might bite you in the butt. > > I thought I was very tricky with all my wife-held trusty tax reducing > mechanisms. The moment you move to the US though you must declare your > worldwide tax within the US. Specifically, USA and Australia have a tax > treaty such that if an Australian lives in the US they only pay tax in the > US under US tax laws. It all comes unstuck when you find out that the US do > not appreciate or respect trusts for tax evasion purposes and they look > straight through them as a transparent entity. You will pay CGT annually... > > If you intend to move to the US and manage your Australian business from > the US you're better off just holding your shares in your own name. > > As I said, it only applies to a small percentage of you, but you know who > you are. > > Patrick. > > On 10 October 2011 16:14, Adam Rands <adamra...@gmail.com> wrote: > >> Thanks for your responses... >> >> The Small Business CGT concessions on the surface look useful... The >> 6m net asset rule looks "generous" (for first time entrepreneurs) but >> the 2m turnover rule must limit many the opportunity to apply it. >> >> From the ATO site >> >> *** >> You are a small business if you are an individual, partnership, >> company or trust that: >> ■ is carrying on a business >> ■ has an aggregated turnover of less than $2 million. >> Aggregated turnover is your annual turnover plus the annual >> turnovers of any businesses that are connected with you or >> that are your affiliates (‘relevant entities’). See ‘Working out >> any relevant entities’ on page 9. >> There are three alternative methods to work out whether >> you are a small business for the current year. However, most >> businesses will only need to consider the ‘Previous year >> turnover’ method >> *** >> >> I'm interested in learning more about trusts and in particular how >> they can be useful in relation to reducing CGT. >> >> -- >> 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 >> > > -- > 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 > -- Geoff McQueen Founder & CEO Hiive Systems Phone: 1.877.425.7315 (US) - 1800 2 44483 (AU) Cell/Mobile: 650.450.4384 (US) - 0414.678.466 (AU) -- 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
