Companies and Trusts

The structure you choose for a business or investment can influence ownership, control, responsibilities and future succession. LegalSense NQ assists clients with company incorporation and the establishment of discretionary and unit trusts, working alongside their accountants and financial advisers.

Our aim is to help you understand the legal arrangement before it is put in place, and to prepare documents that reflect the intended ownership and decision-making structure.

Choosing a structure with a clear purpose

The starting point is what you want the structure to achieve. Are you starting a business, purchasing an asset, bringing in another owner or planning for family succession? We can discuss:

• The proposed owners, directors, trustees and other people with decision-making roles.
• The legal documents required to establish a company or trust.
• How a company constitution, trust deed and related agreements fit together.
• The intended approach to control, ownership changes and succession.
• Issues to coordinate with your accountant before the structure is implemented.

Companies and the people behind them

A company is legally separate from its owners, but this does not remove the responsibilities of its directors. Before accepting a role or signing documents, it is important to understand the obligations involved and any personal guarantees you may be asked to give.

ASIC's guidance on becoming a company director provides a useful overview. We can discuss the legal structure in the context of your proposed business arrangements.

Trust documents and succession

A trust should be considered in light of its purpose, the assets involved and the people who will control it. We assist with the settlement of discretionary and unit trusts and advice on trust deeds. Existing deeds and amendments should be reviewed before changes are made.

Succession planning should also consider what happens if a person who controls the company or trust retires, loses capacity or dies. This discussion needs to sit alongside personal estate planning and any agreements between business owners.

Working with your accountant

Legal, taxation and financial considerations are closely connected. We work in coordination with your accountant or financial adviser so the documents reflect the agreed plan. No structure is automatically the right choice for every client, and a restructure should be considered before assets or interests are transferred.

Preparing for a discussion

Bring an outline of the proposed business or investment, the people involved, your accountant's recommendations and any existing constitution, trust deed or ownership agreement. Tell us about upcoming purchases or deadlines that may affect the timing.

Common questions

Can I use an existing trust for a new purchase?

That depends on the deed, existing arrangements and proposed transaction. Have the documents reviewed before signing a contract or assuming the trust is suitable.

Do I need both legal and accounting advice?

Often both are useful. The legal documents and responsibilities should be considered alongside the tax and accounting consequences of your proposed structure.

This page provides general information only. The advice and steps appropriate for you depend on your circumstances and the documents involved.