I would like to get some general advice on structure in relation to property and business before I venture out to meet the professionals.
This is my situation:
1. Me = Sole trader with two types of businesses. One is my own and other is helping my husband.
2. Husband = sole trader with one type of business.
3. My parents, recently retired and do not have any income apart from the super fund. Hence their tax free threshold can be used.
4. My sister= unemployed from grave illness. Currently on centrelink disability pension. If she returns to work, then she will earn approx 100K p.a.
The business that my husband and I is really picking up and we expect to see growth in the future. This also increases our risk of being sued and amount of tax we have to pay in the future as well. When we started the business, we were only making about $45K, living rent free at my folk's place, so we ran the business as two sole traders.
Now I think time has come for us to think about liability, asset protection and tax minimisation because we have saved up $50K and we are nearly making $100K p.a. combined. We spend about $18K on living expenses p.a and apart from that everything else gets saved. Right now, $50 K is sitting in my parents' account, (my way of asset protection, so that people are deterred from suing me because I don't own anything) and I can get this money any time I want.
What I would like to do is to buy a PPOR next year worth between $400-550K and structure our business so that we as persons are protected and our assets are protected. And if possible, take advantage of my family's situation, namely my parents' tax free threshold.
Apart from $50K I will get $100K from my parents and my husband will get $60K from his parents when we request it. We have advised them not to give it to us when we married 3 year ago, because we were planning to run our businesses as sole traders. So we will have at least $110K for deposit by the time we decide to purchase. I think we are more likely to have about $150K buy end of this year, though. We have tax statements in the past few years stating that our individual income is about $30-50K each. So hopefully we will be able to borrow about $300K from the bank by the end of the year.
From what I have read so far, I should create a family discretionary trust with a company trustee for our business and buy PPOR in our joint names.
In this circumstance, what things should I consider before seeking professional advice, and what other structure options are there for me?
I would like to have the structure issue sorted before I purchase my PPOR.
This is my situation:
1. Me = Sole trader with two types of businesses. One is my own and other is helping my husband.
2. Husband = sole trader with one type of business.
3. My parents, recently retired and do not have any income apart from the super fund. Hence their tax free threshold can be used.
4. My sister= unemployed from grave illness. Currently on centrelink disability pension. If she returns to work, then she will earn approx 100K p.a.
The business that my husband and I is really picking up and we expect to see growth in the future. This also increases our risk of being sued and amount of tax we have to pay in the future as well. When we started the business, we were only making about $45K, living rent free at my folk's place, so we ran the business as two sole traders.
Now I think time has come for us to think about liability, asset protection and tax minimisation because we have saved up $50K and we are nearly making $100K p.a. combined. We spend about $18K on living expenses p.a and apart from that everything else gets saved. Right now, $50 K is sitting in my parents' account, (my way of asset protection, so that people are deterred from suing me because I don't own anything) and I can get this money any time I want.
What I would like to do is to buy a PPOR next year worth between $400-550K and structure our business so that we as persons are protected and our assets are protected. And if possible, take advantage of my family's situation, namely my parents' tax free threshold.
Apart from $50K I will get $100K from my parents and my husband will get $60K from his parents when we request it. We have advised them not to give it to us when we married 3 year ago, because we were planning to run our businesses as sole traders. So we will have at least $110K for deposit by the time we decide to purchase. I think we are more likely to have about $150K buy end of this year, though. We have tax statements in the past few years stating that our individual income is about $30-50K each. So hopefully we will be able to borrow about $300K from the bank by the end of the year.
From what I have read so far, I should create a family discretionary trust with a company trustee for our business and buy PPOR in our joint names.
In this circumstance, what things should I consider before seeking professional advice, and what other structure options are there for me?
I would like to have the structure issue sorted before I purchase my PPOR.
