Business start-ups can be a difficult time – getting bank loans, choosing the right business structure and managing cash flow.
At Taxelite, we can assist you with setting up your company with the effective business structure that matches your needs, whether it is in the form of a sole trader, company, partnership or trust.
As a sole trader, you are the business. This structure is the easiest and least expensive to set up, however it can be difficult to procure loans for the business.
A partnership means that you are carrying on your business with one or more partners and receiving joint income. If your business structure is a partnership, you and your partners are personally liable for the partnership debts.
A trust is run by its trustee for the benefit of the trust’s beneficiaries. The most common variety of trusts is the discretionary trust. The trustee of the discretionary trust has the authority to decide how the profit will be distributed among the beneficiaries. The trust does not pay tax, however the profits from the trust is distributed to the beneficiaries every year, and the beneficiaries pay individual tax.
A company exists as a separate legal entity from the owners, who are shareholders of the company. As a general rule, the personal assets of the owners or shareholders cannot be used to pay for company debts.
Structuring your business correctly at the start is crucial because it affects the tax you will pay later as well as options for tax planning. It will also affect the set-up costs and personal liability if something went wrong with your business.
We also assist with organising financial statements and business start up loans. We can negotiate the purchase of a business on your behalf, assist with cash flow management, payment structures and loans.
Are you looking at setting up a new business? Call us now so we can help take the stress out of starting a new business.