Checklist of factors to be considered when selecting a structure
Does the principal have a spouse, de-facto partner, or children? What are their ages and personal tax rates and the age and personal tax rate of the principal
What is the current tax status and potential liability status of these immediate family members?
Are there any other people, such as close relatives, who are to be part of the business?
What assets does the principal and their family own?
What debt does the principal, and the principal’s family, currently have?
What type of business is it?
Will the business have any offshore activities?
Will the business have significant assets?
Who will be the principals in the business?
How is the business to be financed?
Does the principal intend to withdraw much money from the business in the early years?
Are some principals to receive an additional distribution of profits or capital?
Are discretionary distributions of income or capital required?
Does the principal have a good understanding of tax structures and tax generally?
Does the client have the discipline to run a more complex structure properly?
If the business is to be operated for the benefit of just one family, who are to be the owners of the business? Must they have their own equitable interest in the business?
Are new partners to be admitted in the future?
What is to happen if one of the principals wishes to leave the business?
What is to happen in the event of the death of one of the principals?
Must the business structure comply with a professional association or some other similar body?
Will the business employ people?
What types of clients and customers will the business have?
Does the supplier of work to the principal specify the types of structures that must be used?
What are the short and long term ambitions of the principals?
Is the business expected to make tax losses in the early years?
How big is the business, how profitable will it be and how much money does the client have to spend on a tax structure?
What are the principal’s priorities? What is the principal concerned about?
Who is to run the structure on a day basis? Who is to have control of the structure?
Disclaimer: This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in this article is for guidance only and should not be relied upon without obtaining professional advice having regard to your specific circumstances.
“Liability limited by a scheme approved under Professional Standards Legislation”
Advice Reports 
