Company & Trust Set Up
Epic Tax offers fast and reliable company and trust registration service that gets things done right the first time. We can also workshop with you to decide on the best structures for your businesses and investments if you are not already certain.
1
What is a company and the pros and cons?
Company
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A separate legal entity, controlled by shareholders and operated through managers, directors or agents.
Advantages
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Limited liability
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Tax benefits
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Business can own property in its name
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Ability to transfer and sell shares
Disadvantages
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Expensive reporting fees
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Control of company subject to shareholders
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Reporting requirements on directors, managers etc
2
What is a trust and pros and cons?
Trust
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A relationship between a trustee and the beneficiaries, defined in a trust deed.
Advantages
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More options for income distribution
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Can be advantageous for minimising tax
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Operate the business with more privacy
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Protects the business from a beneficiary’s bankruptcy
Disadvantages
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More expensive
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More complex
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Complex to dissolve
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Difficulty with borrowing funds
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Trustee’s powers are limited by the trust deed
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Losses cannot be distributed; profits can incur increased tax rates
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A trust can only exist for 80 years
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Trustees are personally liable for all debts (although trustee can be a company)
3
Which one should I choose?
The choice of company or trust as business/investment structures is largely depending on individual scenarios. The suitable structure for others might not be the ideal one for you. Business advisors at Epic Tax can analyse and help you to determine the best structure that suits your needs.
