For established business owners, the way profits and assets are held across a business structure can have significant tax implications over time.
In this video, Pat walks through a hypothetical business owner example to explain some of the tax structuring considerations that can arise as business owners approach retirement. He looks at trading companies, family trusts, bucket companies, Division 7A loans and superannuation, and explains why these structures need to be considered well before a business is sold or the owner stops working.
Pat also discusses a common issue with bucket company share ownership, the potential tax consequences of restructuring later, and why business structures should be reviewed as circumstances and tax rules change.
The examples discussed are for general educational purposes and illustrate tax and structuring concepts only. They are not financial product, investment or financial planning advice, and individual outcomes will vary.
