There are a number of different business structures that are available to anyone going into business.
An analysis of a client’s requirements will lead to determining which business structure to adopt. The principal structures are:
Sole trader
Partnership
Company
Trading Trust
It is appropriate when establishing a new business that the client has advice from a number of different professionals. As a minimum, we work with the accountant of the client as well as the client themselves in choosing the best way forward for them.
Where there is, or will be, more than one business owner, it is important that the goals, the relationship and the understanding between the proposed business owners is also determined and resolved prior to the commencement of the business.
We advise clients as to the issues that should be addressed between the business owners and we record the agreements made between them in a shareholders’ agreement or a joint venture agreement. When the structure of a business is that of a company, the company constitution should then be prepared to reflect the shareholders’ agreement that has been reached.
As time progresses and businesses become bigger, smaller, purchase subsidiaries or have a change in the number of shareholders and directors, our clients seek advice as to how the business should be restructured to meet the forward direction intended by the business owners.
As well as changing the business structures, it may be necessary to change and restructure the financing of the business and how the management decisions are made.