In the process of buying a business, the purchaser should conduct a due diligence review to establish that they are buying what they believe they are buying. The review identifies areas of risk and contingent liabilities that the business may have and to factor these risks in the purchase price. When buying a business or [...]
Browsing Posts in Business structure
There is no one best business structure. Every person’s circumstances are different so what might be an appropriate structure for one person may not be an appropriate structure for another. Further, often more than one type of structure may suffice and so a choice needs to be made. The most important thing is to ensure [...]
Asset protection becomes more important as a person’s wealth increases and as a person faces greater risks. These risks often arise when a person works in a managerial or partner capacity in an organisation, such as a director, partner or as a trustee. A person’s wealth is also at risk where they run a business [...]
When planning to set up a business in Australia, choosing the right business structure is important because each type will have different implications on your tax, operating costs, protection of assets and how other businesses deal with you. Depending on your business goals, the right business structure will eventually save you money. Sole trader This [...]
Watch the following video and learn about calculating the value of LAFHA: A business structure or entity is allowed to pay a living away from home allowance (LAFHA) to an employee who is living away from home as part of their work duties. This allowance is not treated as income under the PAYG scheme but will be subject to [...]
Owners of business structures either as partners, shareholders or trustees can be employed by the partnership, company or trust company they are part of, and receive compensation income for their work. When a business receives payment for personal services rendered by an employee, a question arises about the nature of the payment, especially when the [...]