How do you set up
Trading as different businesses to reduce tax
I want a concrete cutting business that hires tools off own hire company and uses own labour hire company
What are the pros and cons. How do I apply for this?
Setting up a trust to reduce your tax is a little complicated but totally legal.
However, if your sole purpose for setting up the trust is to reduce tax then you may be caught by the anti-avoidance provisions contained in Part IV A of the act.
Therefore setting up a trust structure for protection purposes is also a good reason.
So There are a few ways to do it.
Set up a trading company
Create a Family Trust
Have a Corporate Trustee ( ie a company as the trustee)
An Alternate is just to set up the trust with a corporate trustee.
There are other ways but these are the most common. The full details need to be known, your reasons and the future. If you use a family trust then it's likely you can get investment into the business because it is a family trust.
Go and seek out some good advice and this is a costly process but well worth it in the end.