Introducing Brent McCartney, chartered accountant and current director of DFK Benjamin King Money, leading accountants and business advisors. Brent is currently an accountant of choice for three property mentoring groups and over the next few months will be writing a series of articles for Your Property Project on structuring and accounting for any and all property projects.

Introduction to Structures

The initial decision as to which business structure is appropriate to your property projects is an important one. Areas of relevance when considering an appropriate structure includes, but is not limited to:

 

  • Purpose and nature of the project
  • Financing requirements and arrangements
  • Management and control
  • Taxation (including Capital Gains Tax implications)
  • Asset protection
  • Future flexibility of structure for future use
  • Costs of its establishment, maintenance and winding it up
  • Estate planning

Making fully informed decisions on the appropriate structure at the commencement of your property development or investment project has the potential to minimise future tax liabilities, however this should never be the sole consideration in choosing the structure.

Types of accounting structures

There are four principal types of accounting structures, being:

1. Sole Trader

  • An individual completing the project in their own personal name who will be legally responsible for all aspects of the project.

2. Partnership

  • A group of people or entities carrying on the project together.

3. Company

  • A legal entity separate from its shareholders (owners) completing the project.

4. Trust

  • An entity type that generates income and/or holds the project for the benefit of others

In future articles on Your Property Project each of the above structures will be discussed in further detail in terms of their use and advantages and disadvantages. These structures and their uses Brent discusses with clients on a daily basis is happy to do the same for you through your relationship with Your Property Project.

Brent McCartney (Director) dfk Benjamin King Money
[email protected]

www.dfkbkm.com.au
(03) 9098 4208