by ccs8  18/01/2008  21347 Page Views
12 Comments  Commercial law, litigation, contracts, IP, property law

Hi everybody....

I am in the process of buying over an existing business.  A friend I spoke to advises me to set up  a Discretionary trust ( we'll call it ABC Trust) and to operate the trust with a corporate trustee ( we'll call that XYZ Pty Ltd).  So now I have XYZ Pty Ltd as trustee for ABC Trust.  Now from what i understand the XYZ Pty Ltd will be running day to day business and the trust is just for asset protection and distribution to beneficiaries.

Now I've been reading a lot and the more I read the more I get confused.First of all, I was told that a trust will need an ABN, a TFN, GST registration, PAYG registration, lodge a BAS monthly or quarterly, lodge an annual tax return and prepare a profit and loss statement.

And a company trustee on the other hand will need an ACN.

But does the company trustee need to register for TFN, GST,PAYG or do any of those BAS,tax return and profit-loss statement? Can or does the company need to register for an ABN?

If the company runs the business for the trust, should i set up a business bank account under XYZ Pty Ltd? or should i set up the account under XYZ Ptd Ltd as trustee for ABC Trust?

Please explain to me as I am totally confused .  Thanks