There are a variety of business structures you can choose from, whether starting a business, acquiring a business, being in partnership or entering a joint venture or consortium. The right structure can depend on a lot of factors including the business activity – trading, investing or managing assets. The structure may also depend on what you, as the business owner, are trying to achieve. For example:
- To grow and sell
- To generate income for lifestyle or personal wealth
- To facilitate the passing of wealth to family members
- To manage exposure to risks
A quick conversation will identify your needs, that of the business and the suitability of structures. Once you know what the most suitable structure for your business is you will need to know how to keep that structure efficient for tax purposes.
We can help with:
- Structuring your UK or international business.
Whether you are starting a UK or international business you will need to structure it correctly. We can advise on which structure out of limited company, sole trader, partnership or limited liability partnership will be the right one for your business by taking into consideration all of the necessary factors.
- Reorganising your business structure to maximise tax reliefs, prepare for sale or commercial efficiencies.
There are many ways to reorganise your business depending on your reasons for doing so. We can help future proof your business by advising you on the various tax reliefs and planning that is available to you.
- Due diligence when buying or selling a business.
Selling your business doesn’t have to be stressful. We can take the pain out of the process by determining your exit strategy, give you advice on how to make your business more appealing for sale and creating a solid corporate governance processes. We will help get everything set up to sell your business no matter what stage you are at.
- Ensuring corporate governance and internal processes are robust.
Nobody likes paperwork so we will help you streamline your processes while ensuring that you are keeping robust and accurate records so that you can focus on more important things.
- Securing business for future generations.
Whether you’re building a business to sell or to pass on to future generations we can work with you to identify the necessary steps to ensure a smooth process.
- Risk assessment for investors.
Whether you are looking to sell your business or to finance or acquire shares in a company you need to make sure it will be profitable. We can help you determine potential risks including internal, external or operational so that you can feel confident moving forward.
- Entrepreneurs' relief from capital gains tax.
As an entrepreneur your focus should be on growing the business. We can help mitigate tax exposure by determining whether or not you qualify for entrepreneur’s relief helping you to avoid the common pitfalls.
- Your eligibility for the Enterprise Investment Schemes and Seed Enterprise Investment Schemes.
Regardless of whether your business is just getting started or already established we can work with you to see which investment schemes you qualify for so that you can attract more investors and tax reliefs.
Case Study 1: Film studio
We were approached by a solicitor whose client owned a film production company that had utilised its profits to acquire investment properties. The shareholder and director were considering retirement although wanted to keep the properties and sell the trade. The value of the properties and income generated resulted in the shares not qualifying for entrepreneurs relief. We advised and sought HMRC clearance on a demerger utilising provisions of the Insolvency Act permitting the properties to be held separately to the trade. It also meant that after the minimum ownership period, the shares qualified for relief on a future sale.
Case Study 2: Capital demerger
A firm of accountants introduced a trading business with two distinct operations. The owner considered that one operation could be sold relatively quickly whilst he wished to retain the other for an income stream. We provided advice on the alternatives to separate the operations and agreed to undertake a capital demerger. Clearance was sought from HMRC and the transactions undertaken working in conjunction with corporate solicitors. The operations were separated and one subsequently sold which qualified for entrepreneurs relief.
Case Study 3: Property developer
We were approached by a property developer who wished to relocate overseas. The property business had historically received finance from third parties although the shareholder had accumulated enough wealth to finance some projects himself. We advised and put in place a corporate structure for both the investing aspects and the trading elements taking into consideration the cross-jurisdictional tax position.