any suggestions on structure???

[bicko]

Dear financial overlords,

Am looking at doing quick turnover reno's to increase cashflow. We do not have the serviceability to reno and hold just at the moment. (all in good time)

This would be a sideline business, so considering going under company pty ltd out of a discretionary trust.

Would the company have to be in its own Unit trust.

Believe the Discretionary Trust will give the best results as far as distributing profits.


Any comments/step throughs at this stage would be very helpful.
eg. implications of doing x versus y


cheers

bicko

 

[DaleGG]

HI

Using a company as trustee of a family trust will work fine. You will have good asset protection, and, have the ability to distribute profits amongst family members where applicable. Also, a trust is entitled to claim more deductions and this may help as well to reduce the amount of taxable profit distributed and on which you pay tax.

No unit trust is required.

Dale

 

[bicko]

Dale,

thankyou for your reply.
simple is best, glad I dont need trusts up to my eyeballs.

Cheers

bicko