There are a range of factors to be considered when choosing a structure, but in our experience, there are four key factors on which more weight should be placed:
- Asset protection – protection of the assets of the owner versus protection of the assets of the venture;
- Income tax minimisation;
- Capital gains tax minimisation; and
- Ease and cost of administration.
The type and complexity of the structure to be adopted will be determined by considering the factors listed above. In general the following basic structures will suit many investments:
- Discretionary trust with an individual trustee;
- Discretionary trust with a corporate trustee;
- Hybrid unit trust;
- Partnership of individuals;
- Partnership of discretionary trusts;
- Individual (sole trader); and
- Self-managed superannuation fund.