A business operator may establish a company to operate the business. Assets in the business are transferred or leased to the company and the business operator is an employee of the company and paid an agreed salary and superannuation contributions. The business operator maintain control of the company as its director and accesses its profits as a shareholder.

Profits made by the company are subject to company tax and then distributed to the shareholders by way of dividends according to their shareholding.

If there are non-family members involved in the company, it is recommended that shareholder agreements be entered into setting out the rights and obligations of the shareholders in the operation of the business, such as their ability to transfer shares, their work commitments and obligations and dispute resolution procedures.

We can help you in incorporating a company and drafting appropriate shareholders agreements.

Our contacts:
Janelle Brown Partner
Trevor Kuhle Accredited Specialist