{"id":707,"date":"2020-12-22T14:09:52","date_gmt":"2020-12-22T04:09:52","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=707"},"modified":"2020-12-22T14:13:33","modified_gmt":"2020-12-22T04:13:33","slug":"run-business-through-trust","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/business-structures\/run-business-through-trust\/","title":{"rendered":"How Do I Run My NZ Business Through a Trust?"},"content":{"rendered":"\n

When you are deciding how to structure your business, you have many options to choose from<\/span>. <\/span>You can tailor t<\/span>hese options to your specific needs. One such option is incorporating a trust into your business structure. I<\/span>n New Zealand, it is not common to run your business solely through a trust<\/span>. However, you can use it as a part of your business. One size does not fit all, so b<\/span>efore you register a trust,<\/span> you should do some research. <\/span>It is <\/span>also a good idea to get legal advice<\/span> on whether this structure is right for your business. This article will discuss the advantages of using a trust in your business structure, as well as some possible ways you could do so.<\/span><\/p>\n\n\n\n

Creating a Trust<\/span><\/h2>\n\n\n\n

You create a trust when you (the settlor) give something of value to another person (the trustee)<\/span>. For example, something of value might include the commercial premises of your business, or your family home. The trustee holds and maintains it for the benefit of someone else (the beneficiary). <\/span><\/p>\n\n\n\n

Holding your assets separately in a trust means that you do not own them<\/span>. Instead, the trustee has them in their name on behalf of the trust. This can provide you with a number of advantages. <\/span><\/p>\n\n\n\n

Advantages of Having a Trust in Your Business Structure<\/span><\/h2>\n\n\n\n

Because of its special placement in the law, trusts can be useful for a variety of reasons. <\/span><\/p>\n\n\n\n

Asset Protection<\/span><\/h3>\n\n\n\n

When you place assets in a trust, this means that you do not legally own them anymore. However, you may name yourself as a beneficiary of the trust<\/span>. This allows you to enjoy the benefits of those assets.<\/span><\/p>\n\n\n\n

I<\/span>n addition, if something goes wrong and you are in debt, y<\/span>our assets <\/span>will be protected. Your creditors cannot claim the assets in trust to pay back that debt. This is because you do not legally own them. This can be useful in the context of your business.<\/span><\/p>\n\n\n\n

For example, your business is not doing well and it goes under. If you<\/span>r commercial premises a<\/span>re in a trust, creditors cannot claim the property to pay back any debt. This gives you some security and means that you have less to lose in the event of a business failure. However, there are some exceptions to this. This is mainly where companies have operated with deliberate misconduct.<\/span><\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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