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Did you know that your accountant and lawyer can work together to help your startup? Below are some handy tips about how both can help.
An accountant or a lawyer can help you set up the start-ups business structure.
Below are the 4 business structure as you can choose from in Australia.
Now, it's a good idea to have your structure set up before you start entering into business contracts.
In particular, this is the case for the company structure.
Because when you enter into a contract as a company, you have the benefit of limited liability.
This means, your liability is limited to the value of your company assets. And, it means that you can keep your personal assets separate to company assets.
Both a lawyer and accountant can help you to prioritise your setup work in your first 3 to 6 months when it's most intense. Here’s an idea of the sort of work you may need to complete:
If your accountant has set up your business structure and it involves a trust, or you’re just unsure, you should ask your accountant which structure to use before you enter a contract.
Using the right structure is important for tax planning. For example, it may make more sense to use one particular company over another.
Choosing the right shareholder is important for tax planning purposes. So, while a lawyer may draft your shareholder agreement, you should be getting an accountant’s advice about who a shareholder should be.
Also, shareholder agreements usually have financial covenants that about the state of the company’s finances, and an accountant should check these.
Below are some examples of financial covenants.
Now, when you first set up your company, you are going to need some company records that either an accountant or lawyer can prepare for you. Below are examples of these records.
You can download the above templates on our resources page.
Make the most of your accountant and lawyer’s time by getting their help with your:
Do you have any questions about setting up your business?