Do you have a niggling feeling you may not be operating under the best structure to suit your needs?
Each structure has its own benefits and downfalls, and the structure that suits your business needs may be different from the farmer next door. Choosing the right structure is never easy, as ultimately, the decision you make will impact all areas of your operations and succession planning.
Over the past couple of years, we’ve had farming businesses from across the region come to us with a structure that doesn’t suit their individual circumstances.
Unfortunately, this isn’t an uncommon occurrence. Too many farming businesses are operating under a structure that doesn’t offer them risk protection and future opportunities.
My biggest tip is to try and step back and take a look at the bigger picture. What is your purpose for being in business?
Whether it’s to keep the farm in the family for generations to come, or to grow the farm to support your children and their families in the future, or perhaps you have a different vision altogether, your business structure will ultimately impact your success.
When it comes to business structures, there are a range of options. The most common structures in Australia include sole trader, partnership, company and family (discretionary) trust. The structure that suits you will depend upon a number of factors, but most importantly, what your end goal is.
