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You need a non-connected person to get true seperation, otherwise a trust might not protect in a financial calamity (although it will still work fine for estate planning).
A lawyer or accountant that you are using in your business (and trust) is probably first prize. There are companies that specialise in trust administration and being the independant trustee, but fees might be an issue.
It is truly unfortunate that small businesses set up through a trust structure don't qualify for the small business tax incentives.
I also believe the disqualification based on owning multiple businesses is also less than constructive. The purpose of the small business tax breaks is to encourage more small businesses, pick up employment, etc. Who better to seed more than someone who is already making ground with one. As it stands, the incentive to become involved with the opening of more businesses by an existing business owner is removed.
I understand the main concern is to prevent tax avoidance by breaking your company down into smaller components to keep taking advantage of the tax breaks, but that could be solved by making the rule based on the total numbers of all the companies with a common ownership element.
My only tip to reduce tax on trusts is to remember the pass through principle. Keep passing the benefit (profit/gain) through to where it will be most tax efficient.
I admit I debated long and hard about going the trust/PTY Ltd structure route. But in the end, if it made sense to Anton Rupert to do it that way, that's good enough for me.
A lawyer or accountant that you are using in your business (and trust) is probably first prize. There are companies that specialise in trust administration and being the independant trustee, but fees might be an issue.
I also believe the disqualification based on owning multiple businesses is also less than constructive. The purpose of the small business tax breaks is to encourage more small businesses, pick up employment, etc. Who better to seed more than someone who is already making ground with one. As it stands, the incentive to become involved with the opening of more businesses by an existing business owner is removed.
I understand the main concern is to prevent tax avoidance by breaking your company down into smaller components to keep taking advantage of the tax breaks, but that could be solved by making the rule based on the total numbers of all the companies with a common ownership element.
My only tip to reduce tax on trusts is to remember the pass through principle. Keep passing the benefit (profit/gain) through to where it will be most tax efficient.
I admit I debated long and hard about going the trust/PTY Ltd structure route. But in the end, if it made sense to Anton Rupert to do it that way, that's good enough for me.
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