Common benefits of a transition to Company
- it’s a separate legal entity from you (and your business /family partner if you have one); and
- asset protection (eg the family home); and
- the tax structure; and
- expansion and financial growth opportunities.
First, let me tell you a little story…
Proper Planning and Preparation Prevents P!ss Poor Performance!
The point of this story??
What are the little painful things for a Company Transition?
Q Do you require a special licence or registration to operate your business?
- Builders Licence
- Motor Vehicle Repairer Licence
- Electrical Services Licence
- Real Estate Licence
Q: Do you have any equipment on finance in the partnership / sole trader
Q: Do you have a rental agreement in place with your current place of business?
If you have a rental agreement or commercial lease, often times there is a clause excluding sub-leasing. Many landlords are OK for you to keep your existing lease but use it for your Company.
However, legally, you are still personally bound and liable by the lease as it is in the Sole Trader or Partnership. This means, if the Company fails to thrive and doesn’t pay its debts, you are still legally liable to pay the rent in your personal name(s).