After the successful launch of our Asset Protection series last week, we are back with more!
In our first episode, we discussed how best to protect your family home. This week, we keep the ball rolling by exploring strategies for protecting the equity in your business, particularly if you own the shares in your company in your personal name.
Structuring your Business
To keep things simple in the start-up phase, many business owners set up a proprietary limited company and put the company shares in their own name. They then happily get to work building their business.
However, this simple approach can sometimes leave you exposed.
As a business owner, you may at some point find yourself personally liable to third parties for any number of reasons, including liability related to directors’ duties, OH&S or personal liability under guarantees or other contracts. If you own valuable shares in your own name then those shares will be exposed to creditors and you may lose everything you have worked so hard to build.
So what can you do?
You can consider restructuring, but that can come at a cost in terms of tax, stamp duty and professional fees. In this episode, Martin and Ed outline some of the options, upsides and downsides.
Maximising your Super
We also consider how business owners may transfer business properties into their self-managed super funds, so that income produced from the asset can be distributed tax-free upon retirement!
Next week we will be looking at trusts, explaining how they work and talk about how best to structure a trust to protect your valuable assets.
*Please note that Martin and Ed’s asset protection strategies are general in nature and do not take into consideration any of your personal circumstances. You must seek individually tailored advice to ensure you properly protect your business and personal assets.