What kind of business entities do I need?

Getting people set up for retirement is our specialty, but a lot of our clients are also small business owners. A common question we get is ‘what’s the best way to structure my business? What entities do I need?’

The answer will be specific to your situation - but generally, I advise clients to have their businesses set up in a way that allows them to build wealth and save on tax; and for that it’s usually best to have more than one entity.

You might trade out of a company, but also have a family trust to give you more flexibility in how you manage and direct the money your business generates. Or you might structure it the other way around, operating the business out of a family trust, while also having a company to help protect some of your business’s assets.

The reason for this? It’s good practice to have both a trading entity (one which your business operates from) and at least one separate investment entity to help manage your businesses earnings, achieve tax savings or as part of a long-term wealth-building strategy.

This approach also helps separate the business risk from the investment risk to help protect any cash investments you may have.

We aim to work with our clients to set up the best business structure for them, at the right time. We don’t want you to end up with more entities than you actually need, so few that you won’t achieve your business goals, or so late that It won’t help you get to retirement.

So whether your business and investments are set up as a company, a trust, a self-managed super fund or you’re a sole trader - each has a role to play in different situations, and we’re here to help you decide what’s best for you. Reach out to start a conversation with us today.