This document provides information about a business seminar hosted by Quantum Business House. It includes an agenda for the seminar that covers topics like business structure, buying a business, business planning, marketing, finance, taxes, risk management, and evaluation. The document also discusses different business structure options like sole trader, partnership, company and trust. It provides pros and cons of each structure and examples of how they could be set up. The seminar and consulting services from Quantum Business House are available for a fixed fee.

1. By Ben Youn
Copyright 2014 Quantum Business House
WELCOME to QUANTUM BUSINESS HOUSE

2.  2 hours for each session
 10 minutes tea time
 Bathroom & Kitchen
 Today’s Speaker
 Please network each other
 Future Plan
- Business Forum
- Networking Events
- Business Mentoring
Copyright 2014 Quantum Business
House

3. 1. Setting up business structure (June 04)
2. Buying a business (June 11)
3. Business Planning (June 18)
4. Marketing (June 25)
5. Raising Finance (July 02)
6. Financial Management (July 09)
7. Tax system and compliance issues (July 16)
8. Risk management (July 23)
9. Financial Health Check (July 30)
10. Business Evaluation (August 06)
Copyright 2014 Quantum Business House

4. Copyright 2014 Quantum Business House

5.  Sole Trader
 Partnership
 Company
 Trust
 Which one is best for my business?
- The answer depends on your
circumstances! (See the attached)
Copyright 2014 Quantum Business House

6.  Sole Trader
- Easy to setup (ABN & TFN)
- Combined income tax with the individual TFN
- Asset protection? – think again!
- Business Liabilities including employee’s
wrongdoing – Owner’s Personal Liability
- Difficult to raise finance
- Difficult to sell the business when time comes.
- Higher tax rate (marginal tax rate)
Copyright 2014 Quantum Business House

7.  Partnership
- Partnership agreement (essential)
- Splitting income between partners
- Partnership business loss can be offset against
other income of the partner
- Each partner liable to pay tax
- Each partner holds liability for the partnership
business (separately and as a group)
- Not a big deal for tax concession perspective
- Break Up – New partnership and capital gains tax
Copyright 2014 Quantum Business House

8.  Company
- A separate legal entity
- Limited Liability for shareholders
- Director’s role and responsibilities
(Corporations Act 2001)
- Company tax rate (currently 30% subject to
be reduced down to 28.5% soon!)
- Financial reporting and audit obligation
(tests)
Copyright 2014 Quantum Business House

9.  Trust
- Unit Trust vs. Discretionary Trust
- No separate legal entity (except for GST)
- Trustee’s role and power
- Trust Deed
- Beneficial interest (Unit holders vs.
discretionary beneficiaries)
- Why Trust?? – Flexibility & Asset Protection
- PART IVA of Tax Act (dominant purpose test)
Copyright 2014 Quantum Business House

10.  Trust
- Two ownerships (legal ownership & beneficial
ownership)
- Protecting trust properties (beneficial
ownership)
- Income Splitting
- Trustee’s liability for business and
reimbursement from trust property (trustee’s
entitlement)
- But beneficiaries are safe from debts.
Copyright 2014 Quantum Business House

11.  Trust
- Corporate Trustee: setting up corporate
structure and ease of succession
- Costs
- Access to assets could be difficult
Copyright 2014 Quantum Business House

12. Family Trust
Unit Trust
Company 1 Company 2
CGT Tax
Concession for
Beneficiaries;
“Flow through”
Company hold
assets and Unit
trust hold shares
Copyright 2014 Quantum Business House

13. Family Trust
Unit Trust
Company
1
Company
2
Bank
Loan
•Loan: Div. 7A
•7 year repayments rule
•Distributable Surplus
New
investment
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14. A New Company
Unit Trust
Company
1
Company
2Bank
Copyright 2014 Quantum Business House

15.  Rollover of units for shares (Sub Div.124H)
 Then tax consolidation
 Conditions:
- Exchanging shares must be non-redeemable
- Must hold the same proportion of units &
value in share
Copyright 2014 Quantum Business House

16.  Spouse not exposed to business risks
 Family law issue (family home is an asset of
marriage) – legal ownership vs. marriage
entitlement
 Capital Gains Tax – Main residence exemption
 A discretionary trust
Copyright 2014 Quantum Business House

17.  Risk minimisation
- Business risks
- Default risks
- Personal guarantee
- Relationship breakdown
 Tax minimisation
- Income tax and CGT (50% discount)
Answer: a discretionary trust
Copyright 2014 Quantum Business House

18.  Negative Gearing Issue – The owner must
ensure there is other income to offset the
loss created by the negative gearing.
Copyright 2014 Quantum Business House

19.  Please use us as free business adviser
 Free Initial Consultation
 Packaged Services with fixed fee
Copyright 2014 Quantum Business House

20.  Buying a business
 Business Planning
 Marketing
 Raising Finance
 Financial Management
 Tax system and compliance issues
 Risk management
 Financial Health Check
 Business Evaluation
Copyright 2014 Quantum Business House