The government has recently passed new laws that allow concessions for small businesses that want to restructure their business. If you have not reviewed your structure for a while now might be a good time to consider a review.
It often turns out that the crystal ball used when setting up a business may have been cloudy, and the structure you are operating under today is not the one that would have been chosen had you known where you would end up.
This could mean you are paying tax at a higher rate than you would like, or that your flexibility to bring in new owners is limited. Or it could be that the structure is now too complex for your needs.
The solution may be to restructure your business to the structure that now suits your needs. However, there are issues to consider when undertaking any restructuring including:
- tax implications – income tax, GST, capital gains tax and stamp duty
- how to manage staff entitlements, workcover etc
- practical issues such as new ABN’s, stationery, websites and business names
- loans and guarantees
…….and the list goes on…..
But this doesn't mean there isn't a solution. The new rollover rules may allow you to eliminate many of these issues, making a restructure an option worth considering.
If you are not sure that the structure you operate under is still suitable for your needs, please contact our office and we can review your options with you.