Making the most of your wealth: business structure

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Did you know that the way in which your business is structured could have a huge effect upon efficiently making the most of your wealth?

The business structure can be key to both operational and tax efficiency.

Perhaps you want to involve other family members in your business but don’t feel that they are quite ready to participate in taking key decisions.

Perhaps you would like to protect the business and its assets from outside events (e.g. the effects of divorce or even death of a participator).

Perhaps you are unnecessarily paying high rates of tax on profits that are being fed back into developing the business.

Deciding on whether to operate as a sole trader, partnership, limited liability partnership or limited company is probably one of the most significant decisions you will take and should therefore be taken only following appropriate advice on all of the various aspects. Each structure has its pros and cons and different structures may be right at different times in the life of the business.

You can often achieve quite substantial tax savings by making simple changes to the structure that have little or no impact on day-to-day operations and give you a high degree of flexibility in the way profits and gains are allocated and distributed.

What is important is that the structure of the business and the ownership of its assets are most appropriate in your particular circumstances.

If you would like more information about business structures or any other accountancy or tax issue, please get in touch – I’d be delighted to hear from you.

Posted in Misc.