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Is Your Business Structure Fit For Purpose?

Our EQ Taxperts have recently assisted a number of clients to ensure they have the appropriate business structure, with action usually required as the existing business structure is either causing issues or will not facilitate longer term plans. Failure to continually assess your business structure can therefore prevent you achieving your objectives, so having a proactive professional advisor is crucial. In the current trading climate assessing whether your business structure is fit for purpose is particularly important.

Common reasons that have led to restructuring include:

  • A mix of trading and investment assets held within one company
  • High value assets exposed to business risk
  • Shareholdings not matching influence
  • Complex share structures that are no longer appropriate
  • “Surplus” cash held by a business
  • Ensuring a business is set up properly to facilitate a sale
  • Planning for future succession or employee ownership
  • Providing protection for unincorporated business owners
  • Problems raising finance
  • Higher than expected tax liabilities for the business owners

There is no one solution for any of these problems, and the changes to a business’ structure can take one of many forms, such as incorporation, creation of a group structure, a company buy back of shares, a change of share structure, a merger or demerger. Our EQ Taxperts work closely with our clients to ensure that the appropriate solution is determined, is tailored to their needs, and allows them to achieve their objectives both in the short and longer term.

Over the coming weeks, we will explore these reasons in more detail and discuss why changing your business structure might be worth considering with some examples of how we’ve helped our clients find the right solution to help achieve their business objectives.

If you would like more information, or want to discuss your circumstances, please get in touch with our Transaction Taxperts today via [email protected] or call one of our offices.

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