Hi,
I'm looking to set up a Pty Ltd company for a friend to operate a residential building business. He will be the sole director.
I intended to set up a family trust and have the trustee as the sole shareholder of the Pty Ltd. My friend, who is to be the director of the company, would also be the trustee and appointor of the family trust.
I have received mixed advice regarding the use of a family trust for a business of this nature, namely, whether it is appropriate or not.
Can anyone kindly offer some input as to whether or not the structure I am proposing is appropriate for this business type, or if there is a better way of structuring it?
Also, would the trust need to be set up prior to the Pty Ltd company being set up or can it be done afterwards?
Many thanks
Nic
I'm looking to set up a Pty Ltd company for a friend to operate a residential building business. He will be the sole director.
I intended to set up a family trust and have the trustee as the sole shareholder of the Pty Ltd. My friend, who is to be the director of the company, would also be the trustee and appointor of the family trust.
I have received mixed advice regarding the use of a family trust for a business of this nature, namely, whether it is appropriate or not.
Can anyone kindly offer some input as to whether or not the structure I am proposing is appropriate for this business type, or if there is a better way of structuring it?
Also, would the trust need to be set up prior to the Pty Ltd company being set up or can it be done afterwards?
Many thanks
Nic