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Discussion in 'Business Legal Issues' started by newbie70, 1st Aug, 2018.

  1. newbie70

    newbie70 Member

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    1st Aug, 2018
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    Location:
    Newcastle
    Hi, I just registered a new company and business name, Domain etc last week.

    I put myself and my wife down as directors. To get financing I need a property for security and I do have access to one (owned outright). I was advised I need to make the owner of the property a beneficiary or a director so the property can be tied into the business loan.

    Any ideas on structure and if I have set this up correctly?

    Thanks.
     
  2. Terry_w

    Terry_w Active Member

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    30th Aug, 2016
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    Location:
    Sydney
    Why did you put the spouse down as director? Doubles the risk

    Who owns the shares?

    Why not borrow against the property and then onlend this to the company and take a charge over the assets of the company?
     
  3. newbie70

    newbie70 Member

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    Location:
    Newcastle
    My wife and I have 1 share each.

    I cant borrow against the property as I have taken redundancy from work and don't have an income atm.

    Obviously I can remove her as a director?
     
  4. Terry_w

    Terry_w Active Member

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    Location:
    Sydney
    I see, in that case the company using the property as security may be the only option.
    Why not have a trustee of a discretionary trust as shareholder? Allows for easy tax savings down the track.

    She can resign as director, but talk to your broker first.
     
  5. newbie70

    newbie70 Member

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    1st Aug, 2018
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    Location:
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    I did consider a trustb but was told it qas complicated and expendive. I was just trying to do the minimum as i dont even know if i could get the finance.
     
  6. Bonkers

    Bonkers Member

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    30th Oct, 2017
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    Location:
    Melbourne
    Success of every business depends on its ability to grow sustainably and consistently over time. I think you should ask yourself key questions even when you're in the structuring/funding phase of your startup. While there's no magic formula, answering these questions might get you a clearer idea.
    Reference: Business Structuring