Search results

Trusts cannot retain income (without trustee paying top tax rate) so with either structure you would have the same issues - may need to retain income in a company at some point. same problems - how to get at that money.

TherThere may be a few reasons 1. Licensing. E.g incorporated legal practice in now. 2. More than 1 family involved 3. Ability to bring I outsiders later. Hard to sell 20% of a discretionary trust but easy to sell shares.

Sounds good to me.

But who is working for the company?

What about wages? If people are working for a trust as a business and not drawing any wages this is underremunation and has asset protection consequences. There may also be tax issues. What changes occured in 09?