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business structure for new insurance broker

Discussion in 'Accounting, Tax & Legal' started by insurance, 6th Nov, 2013.

  1. insurance

    insurance New Member

    Joined:
    6th Nov, 2013
    Posts:
    2
    Location:
    melbourne, victoria
    My situation is as follows:

    Myself and my lovely girlfriend are preparing to start an Insurance Broker Business.

    i have just completed the diploma in financial planning and will getting compliance through a dealer group.

    this venture is the brain child of my girlfriend whso has worked in insurance for 6 years and will be doing the admin side of the business (not joining a dealer).

    What will be the best business structure that we can set up?

    We may only bring in $50,000 in the 1st year just starting a book with a view to becoming more full time after one year.

    Is this worth setting up a trust to own the company to avoid a lot of CGT at a future date if we sell the book? How much will it cost to change business structures after a year?

    Any help would be greatly appreciated as we are very raw to this but would like to avoid nasty surprises down the track.

    Lucas
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Probably either
    - company as trustee of a discretionary trust, or
    - Company with shares owned by a discretionary trust.

    Transfering business to a new entity down the track could result in stamp duty and CGT, not to mention asset protection issues.
     
  3. insurance

    insurance New Member

    Joined:
    6th Nov, 2013
    Posts:
    2
    Location:
    melbourne, victoria
    Thanks For the help Terry, this is all new to me.

    Is it hard to set up a company owned by a DT and I'm assuming you take all the capital out of the trust periodically?
     
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Not hard. Just get a suitably qualified lawyer to set it up for you. Trust could pay out income and capital depending on the terms of the deed.