KeyPlay Business Solutions

Company Formations

What Is A Company?

A company or corporation is a legal entity that is separate from its members. When you form a company, you form an imaginary legal person which can hold and dispose of property, take legal action and sign documents. Because of this separate legal entity a company can have assets and liabilities and make profits and losses quite separately from its members.

You may form, or already be in a company for a number of reasons including:

Asset Protection:

To protect your personal and your family's assets against liability for business debts and business risk;

The best way to acheive this is to ensure that the Director of the company does not own any personal or family assets or investments. For example, we often recommend that the Husband be the sole Director of the company and the family home be transferred soley into the wife's name. Transferring the family home into the wife's name does not result in capital gains tax due to the main residence exemption and in Victoria the transfer is called for "natural love and affection" which means no stamp duty applies. often a couple will say to me "What if we break up ?". Well the answer is the Family Law Act sees beyound and through any commercial or business arrangements and will separate assets as they see fit including superannnuation as well. 

Please call me for a talk about your asset protection plan or lack of one.  Jamie Johns - Principal