Business structure is always based on personal circumstances but it’s vital to understand what your liability is, the tax implications, how much it will cost to run the business along with the regulations and statutory requirements applicable.
There are many things to consider when incorporating and making sure you ask the right questions and understand the implications and advantages of different business structures is key. This episode is a great starting point for any property investor with Shaz sharing great advice on the questions you must ask to get the right business structure for you.
KEY TAKEAWAYS
The real expertise with tax is being able to apply the rules in a particular scenario.
Your business structure will be based on your personal circumstances, it’s important to understand;
Liability - If you are a sole trader you are personally responsible for any debt but as a limited company you are not.
Taxation – what are the tax implications for you with a particular business structure?
How much it is going to cost you to run the business?
Ease of running the business should be considered there are fewer regulations for a sole trader than a limited company where the rules are very different.
If you are considering incorporating make sure you can demonstrate you have a business.
When you move your properties from your portfolio into a limited company you have an uplift in the base cost of those properties.
If you are purchasing 2 or more properties from the same source you can claim multiple dwellings tax relief.
Whenever you are buying properties seek the advice of a land and property tax expert.
BEST MOMENTS
‘If you are in a partnership ensure you have a partnership agreement’
‘Remember when you incorporate that your information is in the public arena’
‘What are the statutory requirements for your business structure?’
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
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