Why Business Structuring Matters
At PD Law, we understand the foundation of any successful business lies in its organisation & structure. How your business is organised can have major ramifications on operations, liabilities, taxes & growth potential – that’s why our experienced team of lawyers specialise in offering personalised business structure services tailored specifically to each of our clients’ goals and needs.
The Most Common Business Structure Types
Operating your business as a sole trader is straightforward, and the costs of founding & running the business are low. As a sole trade, you are legally responsible for all aspects of your business including invoicing, taxes, business operations and debts.
A partnership is two or more individuals who run a business together, sharing both income and losses between themselves.
A company is a separate legal entity from its owner and is controlled by its directors, ownership is shared between the companies’ shareholders.
Companies can be expensive & complicated to establish and are better suited to people whose businesses are expected to make a high income.
A trust is a legal relationship between two or more individuals. In this structure, there is a trustee who carries out business for the benefit for the beneficiaries (other people). The trustee is responsible for the business operations including income & losses.
Structuring Your Business the Right Way
How your business is structured has long-term consequences that go far beyond day-to-day operations and can have serious ramifications on the protection of your business, its growth and overall success.
- Legal Protection – Properly organised businesses can protect personal assets from business liabilities. By creating separate legal entities, you can limit person exposure whilst safeguarding wealth and protecting your personal assets.
- Tax Efficiency – Selecting an effective business structure can have a profound effect on your tax obligations. Selecting an entity type that best meets your needs and structuring transactions strategically can reduce liabilities whilst capitalising on available tax breaks incentives.
- Financing & Investment Opportunities – Businesses that have been carefully structured are more likely to draw investors and lenders who prefer businesses with clear ownership structures, transparent governance arrangements and sound financial practices as protective financing and investment partners.
- Succession & Exit Planning – Property structuring ensures your business is set up for future success and allows for an effortless ownership transition process. Whether your plan involves passing on your business to the next generation or selling, structuring is the key to creating an enjoyable transition experience.
- Operational Efficiency – An optimal business structure streamlines operations, clarifies roles and responsibilities, and facilities effective decision-making. Aligning your organisational structure with your business goals will increase efficiency, productivity, and overall performance.
How Can PD Law Help?
We understand that every business is different, and there is no single-solution approach to business structuring. We’re here to help you and your business succeed, in every way possible.
When you choose to work with PD Law, you can expect:
Expertise & Experience
We possess the expertise in business law and have assisted businesses of all sizes and industries to structure their organisations for maximum success.
Every business has a distinct set of needs and goals, and our team takes a personalised approach when developing solutions tailored to you and your circumstances. We take a holistic approach by considering not only the legal but also the financial, operational, and strategic factors we can design a structure that optimizes operations whilst mitigating risk and encouraging future expansion of your business.
We believe in transparent and open communication with our clients. We take the time to clearly explain complex legal concepts and implications in straightforward language.
Long Term Support
Business structuring isn’t a one-and-done task; as your business develops, new challenges may require adjustments to your structure. We provide ongoing guidance to assist you in adapting to these changes so your business remains agile and resilient.
Contact our commercial team today to arrange a consultation and learn how our structuring services can assist you in setting the stage for future success of your business.