How important is your business structure?

Your business structure is very important and should be talked through with your solicitor and accountant.

When purchasing Management Rights the structure of the business entity, or entities, would depend on your circumstances (single, couple, family, business partnership, etc.). Your structure might include a company, discretionary trust, or unit trust. The right business structure should protect your assets, maximise your returns, and minimise your tax liabilities.

It is a good idea to decide on your business structure and have it in place before you begin looking for opportunities to purchase rights. That way, you can consider a range of options without the time pressures that arise once the purchasing process starts.

(If you decided later not to purchase management rights, you will probably be able to use the newly created business entities to set up to buy or set up a business in another sector.)

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