New Trust Creation ($440)
Including optional registration for a Tax File Number and/or GST
Are you operating as a sole trader?
Unless you are in a 'high risk industry' (read on!), being a sole trader is a great low-cost option when you first start out in business. But as your business grows, there are significant legal (and for many people, taxation) advantages to operating your business in a Company with a family Trust as the sole Shareholder. Alternatively, your accountant may advise you that operating the business in a family Trust (as opposed to a Company with a Trust as its sole Shareholder) is more appropriate, in light of your specific circumstances.
From a legal perspective, if you continue to trade as a sole trader, you could be at risk of losing any assets owned in your name if you are sued or are unable to pay your bills. Creating and using a Company or Trust to own and operate your business moves this potential liability to the Company or Trust instead. Of course, if you are required to give personal guarantees (for example, pursuant to a lease or to a supplier), you may still have personal risk. We strongly recommend that you seek advice from our leading business lawyers before giving any personal guarantee or entering into any high-liability arrangement.
When is the right time to change my business entity?
Creating a Trust (and possibly a Company) involves the upfront cost of this ELBizDocs product, as well as ongoing accounting costs. If your business is not yet making much money, it might not make financial sense to upgrade to a Trust just yet. However, you should keep in mind that when you are ready to transfer the business to the new entity, you will be required to pay stamp duty on the value of any business assets (including goodwill). As such, you don't want to wait until your business is worth thousands of dollars and you will be lumped with a considerable stamp duty bill! The exact timing is usually a matter to be discussed with your accountant.
Are you ready to create a New Trust?
Before you proceed with ordering a new ELBizDocs Trust, we strongly recommend that you first:
- consider whether it is more appropriate to also create a New Company to operate your business and have the New Trust as the sole Shareholder of the New Company (as per our standard recommendation) - if you do, then you need to complete our New Company + New Trust Creation Interview instead;
- speak to your accountant and financial advisor, to determine if a family Trust is the right business entity for you, from a taxation perspective; and
- find out the ongoing accounting costs associated with the new Trust.
What is included with this ELBizDoc?
If you purchase this New Trust Creation ELBizDoc, you will receive:
- a brand new discretionary family Trust (with your choice of name);
- a Trust folder in which to keep all of your important Trust documents, along with the Trust Deed etc.;
- registration of the Trust for GST (if you select this option); and
- registration of the Trust for a Tax File Number (if you select this option).
Do not buy this ELBizDoc if...
Contact us first before purchasing this ELBizDoc if you require any Trust that is not a discretionary Trust, including a unit Trust or a Self-Managed Superannuation Fund.
I'm ready, let's do this!
This Interview will take approximately 10 - 15 minutes to complete.
Before starting, you will need to have handy:
- the name, address, date of birth, place of birth and Tax File Number (optional - only required if registering for GST and/or a Tax File Number) for each person who will be a beneficiary;
- the name, address, date of birth, place of birth and Tax File Number (optional - only required if registering for GST and/or a Tax File Number) for each person and/or entity who will be a trustee;
- other basic contact information.
By hitting 'Start' on this Interview, you acknowledge and agree:
- that we (Enterprise Legal (Qld) Trading Pty Ltd ACN 621 481 507 trading as Enterprise Legal Qld ABN 75 621 481 507) are providing you with legal services and the terms of our ELBizDocs Costs Agreement apply to the provision of these services;
- we are not providing you with accounting and taxation advice in relation to these services and we strongly recommend that you seek advice from an appropriate professional(s) in this regard;
- we are not providing you with legal advice in relation to these services or any other services, apart from:
(a) the generic advice that is provided on this page and throughout your Interview; and
(b) the specific advice provided to you by a member of our EL Team, once you have completed your order;
- any advice regarding the transfer of an existing business to the new Trust is specifically excluded - please contact our office should you need advice in this regard and we will provide you with a fee quotation to assist;
- we will use all reasonable endeavours to create the new Trust within five Business Days (starting on the day after we receive your order, if it is placed after 12pm), but will not be liable to you if we are unable to meet this timeframe; and
- once your order is placed, you are unable to cancel it (this however, does not exclude any rights that you may have pursuant to the Legal Profession Act 2007 (Qld)).