Many thanks - just what I needed to know. About to set up a new business venture but unsure if it will take off or not. Probably stand a better chance of selling it as a whole if it does so the 50% CGT benefit will probably be one of the primary benefits.
Hi Davie, Thanks for the great video. I’m a little confused about one topic of the video. In both pty ltd and trust, you listed the disadvantages of “loss distribution isn’t flexible”. So for both structures, the losses get carried over. Is there a way we can claim against these losses somehow?
Losses are just not transferred to shareholder and the beneficiary. It stays within the company or trust. You can claim it on future profits on the company or trust. You just can’t claim it against other income earn in the personal leave. For example soletrader losses can be offset against personal wages. But you can’t do the same with company losses against personal wages.
Can I ask, in terms of asset protection, what's the difference between operating as a company and a trust? They both sound simlar to me...are you suggesting if the trustee is not a corporate trustee, liability is not limited? Thanks!
Yes the trustee will be the individual as thus their wont be much of a protection. Best to speak to a lawyer in regards to this. Also companies are taxed at 27.5 - 30% tax rate and trust really depends on who the beneficiary of the income is. If the individual benefits the tax is at the individual marginal tax rates.
Limited liability is a term I am never comfortable with when describing structures as certain types of actions/debts can lead to the directors being personally liable. Just google “ato director personal liability” for some examples.
Can the company be a trustee and beneficiary in family trust, so company can retain the lost, or pay less tax after distributing the profits to other beneficiaries?
Can we start up a company first and down the track set up a trust or is it best to do it all at once? We have a partnership business that has grown and looking at converting it to a company. We don't have any assets at the moment to protect but were purchasing our own home in the next few months then we will be investing in property in the near future. I can't speak to my accountant, I have a 4-week wait till i see him next.
Best to talk to a broker as well about how setting up a company can impact your financing. If you are purchasing after June then setting up a company now could impact your serviceability. It really depends on value of business so best to wait to speak to him. Hard for me to give you my opinion as I don’t know enough info.
I spoke to guy recently who told me that he is setting up a non-registered discretionary trust to hold his income and other assets. He also said he won't need to pay tax on income earned that he put into the trust, is this possible or not?
Hi, I am currently plan to have a business selling products online and need help with business structure. I need some guidance, please let me know the quote and if you can assist with my inquiry? Thanks
Many thanks - just what I needed to know. About to set up a new business venture but unsure if it will take off or not. Probably stand a better chance of selling it as a whole if it does so the 50% CGT benefit will probably be one of the primary benefits.
No worries, glad you found it helpful. All the best with your business venture!
What this guy didn't tell u is u can still access the cgt discount via a share sale in the company.
Great video, so far is the one that has helped me best to understand how a discretionary trust works. Many thanks😃
Thank you for watching :)
Appreciate the video, gives me a better idea of how I want to set up our business.
Very helpful information. Thank you so much!
No problem :) Im trying to release regular videos weekly so dont forget to follow us!
awesome vid man
Still a great video thanks- so well explained appreciate it!
Thanks !
Great info, thank you
Thanks for watching!
Thank you for the video
No worries John :)
Thank you for your video
No worries! Hope it was helpful :)
Hi, what works better for online International business based in AU but selling to USA, AU and Europe
Can you please make a video on a company with a family trust set up or point me to the right one of you have it already
Hi Davie,
Thanks for the great video.
I’m a little confused about one topic of the video.
In both pty ltd and trust, you listed the disadvantages of “loss distribution isn’t flexible”. So for both structures, the losses get carried over. Is there a way we can claim against these losses somehow?
Losses are just not transferred to shareholder and the beneficiary. It stays within the company or trust. You can claim it on future profits on the company or trust. You just can’t claim it against other income earn in the personal leave.
For example soletrader losses can be offset against personal wages. But you can’t do the same with company losses against personal wages.
Thanks for sharing the information. Does trust need to lodge a BAS?
if the trust pays GST as it turnsover 75k or pays wages then yes it does.
Hi
Wonder whether a sole trader can start a trust
Thanks
can a trust be with just one beneficiary?
Can I ask, in terms of asset protection, what's the difference between operating as a company and a trust? They both sound simlar to me...are you suggesting if the trustee is not a corporate trustee, liability is not limited?
Thanks!
Yes the trustee will be the individual as thus their wont be much of a protection. Best to speak to a lawyer in regards to this.
Also companies are taxed at 27.5 - 30% tax rate and trust really depends on who the beneficiary of the income is. If the individual benefits the tax is at the individual marginal tax rates.
Limited liability is a term I am never comfortable with when describing structures as certain types of actions/debts can lead to the directors being personally liable. Just google “ato director personal liability” for some examples.
Can the company be a trustee and beneficiary in family trust, so company can retain the lost, or pay less tax after distributing the profits to other beneficiaries?
Yes it can depends on how you write the trust deed.
Can we start up a company first and down the track set up a trust or is it best to do it all at once? We have a partnership business that has grown and looking at converting it to a company. We don't have any assets at the moment to protect but were purchasing our own home in the next few months then we will be investing in property in the near future. I can't speak to my accountant, I have a 4-week wait till i see him next.
Best to talk to a broker as well about how setting up a company can impact your financing.
If you are purchasing after June then setting up a company now could impact your serviceability.
It really depends on value of business so best to wait to speak to him.
Hard for me to give you my opinion as I don’t know enough info.
Great vid helped a lot! What is the difference between a corporation and a company or is company merely another word for corporation?
Australia uses the word company rather than corporations. It basically means the same thing.
@@DavieMach sweet thought so cheers
I spoke to guy recently who told me that he is setting up a non-registered discretionary trust to hold his income and other assets. He also said he won't need to pay tax on income earned that he put into the trust, is this possible or not?
When its too good to be true it probably is.
I definitely think trust are not as good as they use to be compared to 8 + years ago!
Not quite as good but still very good structures
Why so?
Hi,
I am currently plan to have a business selling products online and need help with business structure. I need some guidance, please let me know the quote and if you can assist with my inquiry? Thanks
Best to book in a meeting Don Don!
You didn't cover payrole advantages
Hi Warren, will do it next time then.