| There are a range of reasons that business owners | | | | Specific examples include that if a sole trader or |
| may need to consider re-structuring their business. If: | | | | partnership decides to incorporate, under certain |
| * Your business is experiencing cash flow problems; * | | | | conditions, they may be eligible to deduct, over five |
| Your creditors are demanding payment of outstanding | | | | years, costs incurred by them in relation to the |
| accounts and threatening legal action; * You’re | | | | incorporation such as legal, search or lodgement fees. |
| finding it hard to remain within your overdraft limit; * | | | | On the flip side, another entity may be liable for stamp |
| Your bank is making demands; * You have inherited | | | | duty on the transfer of assets, capital gains tax and |
| company liabilities as a result of personal guarantees | | | | possible loss of tax benefits that the current business |
| provided; * You are unable to make payments to the | | | | structure is eligible for. |
| ATO on timethen you may need to look at | | | | It is said there are two types of expertise that are |
| restructuring your business as a method of getting it | | | | required in order to implement a successful restructure, |
| back on its feet and heading in the right direction. | | | | traditional and contemporary. A knowledge of |
| Taking action to get a distressed business back on | | | | traditional legal and accounting practices is necessary |
| track is generally the best option for all involved. | | | | in order to address areas such as taxation, the rights |
| Following a comprehensive independent review of the | | | | and shares of owners and the ownership of various |
| business, if it is deemed that restructuring is a viable | | | | types of assets. |
| option the next step is to determine which particular | | | | Additionally, an up-to-date, working knowledge of the |
| restructuring components best suit the individual | | | | modern business arena is needed to aid the |
| situation. Some possible options include restructuring | | | | development of modern business models, as well as |
| the business, the disposal of some divisions/assets that | | | | to improve workflow management and online business |
| are not performing well or possible refinancing. | | | | and leverage with third parties. This contemporary |
| The range of areas that a business restructure can | | | | expertise assists many businesses to operate |
| affect reach far and wide. Such areas can include | | | | cheaper, faster and better than their competitors. As |
| control of the business, asset protection planning, | | | | has been demonstrated, there are many issues to be |
| capital gains tax, stamp duty, income tax, GST, land | | | | aware of when looking to restructure a business, |
| tax, payroll tax, estate planning and succession issues. | | | | which is why it is extremely important to enlist the help |
| Depending on the individual situation this can have | | | | of professional lawyers and accountants. |
| either be a positive or a negative effect. | | | | |