When contemplating the creation of a new business, it is not unusual for many people to spend significant time in preparation considering various business plans, marketing options and many other aspects facing new business owners without placing any consideration into the framework of how you intend to trade your new business, and why?
For this reason, people often find themselves in situations where ultimately they commence trading as a sole trader due the simplicity of the structure and the reduced early administration costs.
Whilst operating as a sole trader is sometimes preferential, it is important that all available structuring options are considered from the outset to ensure that your business has the ability to grow and develop in accordance with your business plans, rather than being restricted by an inadequate structure.
At the outset it is important to consider your personal situation.
Some of these considerations should include a contemplation of the following;
1. Do you own your principle place of residence?
2. Does your business operate in a high risk industry?
3. Is asset protection important to you?
4. Does your business plan include the potential expand with the possibility of other investors becoming involved?
By taking the time to consider these options and obtaining advice from one of the solicitors at McNamara Law, we can discuss with you all potential structuring options and tailor your business to ensure;
1. Greater protection of your own assets;
2. Reduced personal liability;
3. Potential tax advantages;
4. Potential avenues for expansion into the future.
This can often be achieved through utilizing Proprietary Limited entities (Pty Ltd), Discretionary/Unit Trusts and/or Partnerships to ensure your business has the framework to support your overall vision, whilst providing you with a high level of protection and security moving forward.
If you are considering starting up your own Business and require assistance in considering what is the best structure for you, please contact us at 13 58 28 to arrange an appointment.