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    I’m opening a small cafe with my friends
    the chef (40%), me 20%, friend 15% 15% 10%
    there are 5 of us. this is the first time we open in business.

    for now our position is at
    make a company which is the name of the cafe)
    then we create a trust which consists 5 of us.
    the trust works as the beneficiary for the cafe.
    is this the correct business structure that we should follow?

    and in terms of profit sharing or dividend, I’ve kept looking in the internet, but failed to find explanation which one is better in what situation and why?

    can you guys help me for this. cheers guys! thanks!

    • Total posts: 226

    Good morning

    I don’t really see the point in putting a trust above the company where you each have an interest in the trust.

    Each owner should hold their shares in the company using an entity which is most effective for them (i.e. some owners may hold the shares personally, others through a family trust).

    I’m not really sure about what you are looking for in terms of your last question – if you are using a trust, the profit is distributed to beneficiaries. If you are using a company you can either return capital to shareholders or pay a dividend.

    I would strongly suggest seeking professional advice when structuring this business, particularly with this many parties involved.


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