Thinking about what option works best for you when setting up your business can be challenging, tax implications, the right structure that is easier to manage, avoiding expensive accounting fees, future proofing as you grow. We have the answers.
The hardest part of making this decision can be much easier than you think. To many businesses just get going and then all of a sudden they have grown and the original structure they went with in a hurry can be holding them back.
Often setting up a structure at the start that is suitable for the long term is the best option. It is actually quite not as much work as you think to go down the company route. Check out the Companies office website, most of this can be done online and if you complete this yourself you can do your own company returns each year saving you lot’s on accountant bills! https://www.companiesoffice.govt.nz/
The first step is to decide on the ownership structure – is it just going to be you or do you have a business partner? What about your family, should your partner have some of the ownership.
Then what about shares you can have 1 to as many as you want. But again thinking about the longer term view, if one day you want to sell some or all of your business having a good number of shares might just make it easier.
Our belief is that it is worth going through all of these questions before you get going as it much easier now, rather than once the business is already flying.