Choosing a legal structure for a hospitality business

Choosing a legal structure for a hospitality business 2017-06-01T13:06:11+11:00

Determining your business structure needs to be informed by:

  • Your business goals and visions
  • Your personal financial circumstances

In particular:

  • Dealing with income tax and capital gains tax
  • Asset protection
  • Ease of making changes. New business partner? Additional funding?
  • Setup costs and ongoing costs
  • Your exit plan

Whites Legal helps new hospitality businesses:

  • With the particular risks and benefits with trading as a sole trader, partnership, corporation or trust
  • Determine the most appropriate legal structure
  • Set up that legal structure
  • Incorporate mechanics to deal with the nature of hospitality businesses

Unless there’s a particular reason put forward by the business owner or their accountant, Whites Legal usually suggests:

  • Corporation, which runs the restaurant
  • The business owners as the directors
  • A unit trust, which owns the restaurant
  • A company constitution and unitholder agreement, which recognise challenges in the industry and the importance of individuals involved

Not sure if this structure fits you? Sit down with us and your accountant we can speak through your personal and business goals to work out the best structure for you.

Let’s get you started

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