What is personal structuring?
Personal structuring is generally concerned with ensuring that, to the extent that it is possible, privately owned assets are protected from litigation, bankruptcy or relationship breakdowns.
Protecting personal assets is much more than setting up a company for your business or holding assets in a spouse’s name. It involves understanding a person’s assets and their risks, and putting plans in place to protect the personal assets (including in the event of incapacitation or death).
It is something that should be revisited as and when the assets and risk profile changes.
Asset protection strategies are important for individuals who have accumulated assets or wealth; may be exposed to professional risks (such as doctors, lawyers, dentists and accountants) or commercial risks (such as business or property owners).
There are a number of different ways to protect personal assets, including through:
- legal structures like family / discretionary trusts
- corporate structures like companies / partnerships
- legal arrangements like powers of attorney
- succession and estate planning (including Wills)
What is corporate structuring?
Corporate or business structuring is generally concerned with the legal status of a business; how it is incorporated and organised; and how it is owned and run. There are four main types of business structures:
- sole trader
- company
- partnership
- trust
It is important that the business structure reflects the business needs, now and into the future, as it can affect:
- who owns and controls the business
- who can invest in the business
- how profits and losses are shared
- personal / corporate liability
- personal / corporate tax arrangements
- expansion, succession and existing strategies
- what legal documents are required
- ongoing cost and reporting requirements
- how disputes and disagreements are handled
It is also important to get the corporate structure accurate / correct at the beginning as there can be significant legal barriers and costs to changing a structure after the business has been set up and has increased in value.
The structure should also be reviewed before any material changes are made to the business (eg new service offering, acquisitions, mergers, partnerships, shareholding changes, new investors etc) to make sure it still works for the business and its owners.
How we help our clients
We have a team of lawyers experienced in personal and corporate structuring. We work closely with clients to understand their business needs and structure their personal / corporate affairs in a way that protects their interest and helps them achieve the corporate objectives.
Key services we provide our structuring clients include:
- identifying and protecting personal / business assets
- setting up personal / corporate structures
- reviewing and amending existing structures
- documenting corporate changes
- ensuring compliance with legal requirements
We also provide the following general structuring / corporate law advice:
- governance and constitutional matters
- director and officer duties / liabilities
- incorporating companies
- establishing trust
- reviewing company / trust deeds
- registering business names
- preparing and lodging ASIC forms
- protecting intellectual property rights
- personal and corporate succession planning
