While trusts can perform exceptionally well as a business structure, it's important to set them up correctly to avoid major issues further down the track.
During set up, you need to ensure that you choose the right trustee and beneficiaries, as well as consider the future direction of your business.
Once a trust become profitable, you also need to ensure that you complete proper tax planning each year to correctly distribute profits to beneficiaries.
Finally, because trusts don't pay tax (which is paid by the beneficiaries), you need to make sure that you are planning for a future tax bill by putting aside money during one financial year to cover the next.
We can help you to realise and fulfil your trust obligations, with advice on:
Liston Newton's long history working with trust business structures means that we understand exactly when and how to implement them.
We're highly experienced in helping businesses like yours succeed. We can provide you with all the accounting and taxation information you need to attain the business success necessary for your complete financial freedom.
We have worked with Liston Newton's Accountancy and Advisory Team for over a decade. During that time, our business has grown substantially both organically and through purchases. This wouldn’t have been possible without Liston Newton Advisory to assist with our business planning, providing proactive advice and ensuring our accounts were always compliant in a complex and volatile industry.
Liston Newton's Accountants analysed our financial and business situation and helped us implement strategies to improve our position. Their strategies turned our business from making a loss, to recording a 6-month net profit of 36 per cent. And we are now on track to show a 240 per cent increase in turnover over the next financial year.
Liston Newton helped us move our accounting over to Xero. Their Accountant managed the set up and training so we felt comfortable with the software. We now have all our processes streamlined which gives us improved visibility of our business performance. This has allowed us to open 2 more stores without a significant increase in administration effort.
We have all the qualifications and experience to help your business grow from strength to strength.
For the best in business set-up advice, get in touch with Liston Newton Advisory.
In a family trust company structure, assets are held by a third party. In the trust business structure, the trustee acts on behalf of the beneficiaries.
A trust can be ideal for businesses and individuals of all sizes – but bear in mind that they becomes tax-effective once profits exceed $100,000.
A trust can also benefit an individual looking to hold assets in a tax effective and legally protected environment.
Trusts do not pay any tax. Instead, any profit is calculated at the end of the financial year, based on the income of the trust, minus expenses and the previous year’s losses. Any profit is then distributed to the trust beneficiaries – whether that's you, your spouse, family members, or a bucket company.
A family trust is a great structure for growing businesses that have moved past the initial start-up stage. Once profits are growing and the business is taking on employees, a family trust should be a serious consideration.
Another benchmark is the amount of tax you pay. If you’re running a business with an average tax rate approaching 30%, a family trust can be beneficial in reducing the amount of tax.
A family trust should also be a serious consideration as a holding structure when making significant investments. Whether it’s running a business via a company, owning investment properties, or any other significant investment, a family trust can help protect those assets from financial and legal troubles – and it can also save you tax along the way.
A trust generally costs $1,500 + GST in legal documentation to set up, or $2,500 + GST for a trust with a corporate trustee. For more information about accurate costs of setting up a trust, get in touch with Liston Newton Advisory.
Selling a business is a big decision. It’s the end result of years of hard work, so you want to make sure you do it right.
What to do with the profits after selling your business, and the best tax structure after your business sale. Read more here.