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Discussion in 'Introductions' started by Will5308, 3rd Aug, 2017.

  1. Will5308

    Will5308 Member

    Joined:
    3rd Aug, 2017
    Posts:
    7
    Location:
    Northern Territory
    Hi all. I'm new to this site and looking forward to getting across the news and views in these discussions.
    By way of introduction, I'm in my mid-50's and have a number of investments and investment vehicles, including a SMSF, trusts, a small business and just kicking off an investment company with my family.
    I live in Darwin and have contacts in a number of SE Asian countries in a variety of areas of interest. No doubt I'll be posting some questions and hoping for some interest and responses (answers).
     
  2. hobo

    hobo Moderator Staff Member

    Joined:
    12th Dec, 2012
    Posts:
    17
    Location:
    FNQ
    Welcome, @Will5308 - look forward to your questions.

    I'd be interested in hearing your thoughts/reasons for choosing a company structure for your investments? (Mainly to see if they are similar reasons to ours.... :))
     
    twisted strategies likes this.
  3. Will5308

    Will5308 Member

    Joined:
    3rd Aug, 2017
    Posts:
    7
    Location:
    Northern Territory
    @hobo
    Thanks for the welcome.
    I have a number of investment streams which are, in one way or another, linked to each other. Complex to some, not to others.
    I am using the company structure to create a new investment stream. It will, in essence, be an in investment company. Initially, for family members and then, as it grows, we'll be seeking capital from other investors.
    The reason we decided on a company, rather than a Trust in one form or another, was about having flexibility in the distribution of profits and consequent advantages in paying tax.
    As you know, Trusts must distribute profits at the EOFY, whereas companies don't. The discretion to distribute, through Director fees or dividends for example, lies solely with the Directors. We don't necessarily want to distribute profits but rather reinvest them. Yet, when the time comes to distribute a dividend, the shareholders in the company are family trusts, for which there are obvious tax advantages.
    Be keen to hear your reasons for setting up your structures.
     
    twisted strategies likes this.
  4. hobo

    hobo Moderator Staff Member

    Joined:
    12th Dec, 2012
    Posts:
    17
    Location:
    FNQ
    Yes, this was exactly our reason as well - the ability to retain profits and reinvest, without throwing a tax bill to the shareholders (which would have been the result of doing this through a trust). We currently run a business through a trust and it can be a little painful at times if we need/want to reinvest profits into the business rather than distribute them out.

    Nice to have you here. Look forward to hearing more about your investments. :)
     
    twisted strategies likes this.