By Tina Zawila
Just in the last week I have spoken to five new clients who all have existing business structures that are no longer ideal for their current situation, and which will be expensive or difficult to update (or both). Each and every one of these clients admitted that they tried to minimize their costs when setting up their business, so they either didn’t take the advice of their previous accountant, or they simply went online and “did it themselves” without advice or support. Now they realise that what appeared to be a cheaper option at the time has turned out to in fact be much more expensive.
We live in an age where you can pretty much DIY anything online, including setting up businesses and legal structures. One of the clients actually said “but it let me insert that answer and upload that document, and so it must have been OK”. Just because you upload something or answer a question and the computer or website “accepts” it does not mean it is correct or acceptable.
Deciding on an appropriate structure, and the details associated with that structure (such as share capital, the constitution or trust deed), involves considering many different aspects of business, including the nature of business operations or investment, taxation, asset protection, risk mitigation, your family situation and future succession planning. It also requires a certain level of business and legal acumen to determine the ‘right’ structure or combination of structures.
Usually, businesses are set up with the intention that they will be at least a medium to long-term venture, and for most entrepreneurs they are hoping for financial success over many years. Yet, they try to save money on one of the most important first steps in business – getting the structure right. Investing in professional advice and the appropriate structure for your business from the start can save you many thousands of dollars into the future.
If you need advice and assistance in setting up your business, or if you would like us to review your existing structure, please call our professional team at UHY Haines Norton on 07 4972 1300. We have the expertise and experience to ensure you get it right from the start.