The Right Legal Structure For A Small Business
As commercial lawyers we get asked about the above issue quite a lot.
Our job is to advise prospective and established small business owners about the right business legal structure from a practical perspective and work with the business’ accountant.
The key aspects are obviously legal compliance, risk management and importantly taxation.
Issues that are relevant for consideration of these important elements involve;
- is this a start up or new business
- how established the business is – what is its current structure
- what is it that the business is actually doing as its core business
- how the business will develop over time, i.e 1 year, 3 year and 5 year marks
- how many people it will employ
- how much are party’s contributing in capital
- how well do the parties know each other
- what risk is the business owner willing to accept and take
- how important are certain taxation issues to the parties
- how will the business move from one structure to the next
- what taxes such as CGT and other costs are there transitioning from one to the other
- what should be the timing around when to make changes to the business structure
Choosing The Right Legal Structure For A Small Business Is Therefore Very Important
If you have any further questions about your small business legal structure, you can also call us on telephone 9528 0235 and sit down with us at a convenient location at either our Crows Nest office on Sydney’s lower North Shore or at Jannali in the Sutherland Shire.
Paul Ippolito is Principal of Ippolito Lawyers. He is an experienced commercial lawyer who enjoys working with small business owners, both new and established ones. He has also lectured for nearly a decade in commercial and corporate law at the NSW College Of Law.