Setting Up Business Structures
When setting up a business it is important to understand that businesses go through several stages, often changing shape and direction throughout it’s operating life. During the different periods, the owners of the business will have diverse requirements depending on what stage the business is at.
For example, it is common that a Business Name is used as the trading body at the start of a new venture. The owner of the Business Name is usually the individual who works, invents and manages the trading body. As the business grows and increases in size (in both financial aspects and personnel) there may be a need to change the ownership – there are many options when available such as Company registration and/or setting up a trust. There are advantages of changing structures such as reducing personal liability and protecting personal assets.
There are options available and you should consider some of the following:
- Protection of Personal Assets
- Set up Costs
- Legal Liability
Setting up a business doesn’t mean you need to understand all the different business structures. Discussing your requirements for both the short and long term with your trusted adviser (accountant or lawyer) while taking into consideration some of the above points should get you heading in the right direction.