Corporate Structures
Whether a start up situation, an established business, a collaborative venture or a critical ‘trading under stress’ situation, the choice of corporate structure requires input from a number of disciplines drawing upon the expertise of Audit and Accounting, Taxation, Corporate Finance and Corporate Recovery experts. Depending on the particular circumstances there are a number of key issues to be considered:
Business Start-up
- Choose corporate structure most appropriate to the business mode
- Customer requirements for audit or limited liability
- Projected growth and funding
- Profit extraction
- Plans for disposal
Established Businesses
- Is the existing corporate structure out-dated for your needs?
- Sole traders and partnerships should consider incorporation for the more effective management of profit and taxation and succession planning
- Professional partnerships may wish to consider the benefits/implications of LLP status
- In groups, divergent objectives and risk may be managed by a de-merger or restructuring.
Business Collaborations
- Joint Venture Company, partnership or Limited Liability Partnership (LLP) could be considered.
- Need to consider the level of risk, is the structure required for a single purpose or for a long term project, the funding requirements and profit extraction.
Businesses Under Stress
- All businesses trading under stress should seek urgent advice to avoid formal insolvency proceedings.
- Assessment of the current financial position and short term requirements mayrequire cessation of loss-making or capital intensive activities or restructuring including hiving off business units or liquidating subsidiaries.