Business Structuring
Business structuring is crucial for all business owners and refers to the process involved in determining the most suitable legal structure—such as a sole proprietorship, partnership, trust or company, to meet the specific needs and goals of the business. Each structure comes with its own implications for personal liability, taxation, and regulatory compliance.
For instance, a company might offer limited liability protection and potentially a better tax rate, while a sole proprietorship may be simpler to start and manage but offers less protection. Effective business structuring is crucial as it positively impacts and controls the business's operational efficiency, tax obligations and outcomes and ultimately influences the long-term success and sustainability of the business.
At Glavis Advisory we know that each stage of a business life cycle or the owners life cycle may require a different business structure or adjustment to the existing structure, it is not a set and forget and is a constantly changing landscape. We believe what sets us apart is how proactive we are in this space, constantly reviewing client structures to see whether there is a better business structure available for them, this ensures their business has the best chance of success.
The wrong business structure can cost thousands of dollars a year and potentially hundreds of thousands of dollars in the businesses life cycle which shows the importance of this, as that is an earlier retirement for some, or for others potentially more cash flow for the business to invest and grow quicker.
Business structuring is determining the most suitable legal structure for a business, such as a sole proprietorship, partnership, company, or trust, to meet its specific needs and goals.
Each legal structure has different implications for personal liability, taxation, and regulatory compliance.
Effective business structuring positively impacts operational efficiency, tax obligations and outcomes, and long-term success and sustainability of the business.
Glavis Advisory are proactive in continually reviewing client structures to see if there is a better business structure available for them.
Choosing the wrong business structure can be costly, potentially affecting retirement plans or business growth.