Putting the right structure in place is invaluable if you are considering
- Establishing a new business
- Entering into a joint venture or strategic alliance with another business
- Acquiring a new investment
The right legal structure can help you to, depending on your circumstances
- maximise asset protection and minimise your legal risk;
- minimise tax; and
- maximise value for later in life.
More often than not, it is critical to put the right legal structure in place at the outset, to avoid potentially hefty stamp duty, tax and other issues arising down the track. We will work with your accountant and other advisers to help you decide on the right business / investment structure for you.
If you are considering going into business with others, you should also consider how to manage and document that business relationship. Communication is the key, both as between you and your business partners and between us and you so that we can develop a detailed understanding of your business and needs.
Ownership Agreements
By carefully documenting your relationship with your business partners, it can help to avoid costly and unwanted disputes later on. Typical business ownership agreements are partnership agreements (for partnerships), shareholder agreements (for companies) and unitholders’ agreements (if your business is being operated through a unit trust) and joint venture agreements.
These agreements will typically cover
- what each business partner is expected to do and contribute;
- the decision-making processes and control of the business;
- exit mechanisms (for example, this could be a right of first refusal in the event that one business partner wishes to sell his/her interest) together with the associated concepts of drag-along and tag-along rights;
- mechanisms to deal with disputes if they ever arise;
- each party’s obligations towards each other including confidentiality;
- the imposition of restraints if someone ceases to be a business partner.
