They’d built a successful business over many years as well as a list of assets. Unfortunately, their current business structure meant that all of their assets were exposed to the inevitable risks associated with running a business today.
Often, it’s far too late to protect your assets once the sharks have begun to circle.
For example, insolvency laws provide that you need to have reasonable grounds you are able to pay all debts as and when they fall due.
If you cannot prove this, a liquidator may have grounds to claim you were trading insolvent at the time and any steps you take to protect your assets after this will be void.
In this case, capital gains tax rollover provisions could be utilised to restructure the existing business into a more suitable structure.
This new structure was implemented to minimise the assets exposed to the trading operations. Then, we created an ongoing process which would ensure that all the business’ future profits were protected.
The end result was successful for all parties. Our clients were able to exit from their business and achieve a great financial outcome and clear pathway to retirement when the time is right for them.
Our accountants can’t wait to work with you to create confidence and stability in your organisation. Chat with one of our experts to get started.