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  • #983449
    Summers
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    Hi I’m new to this forum but i have read plenty of posts and found them very helpful.
    I currently have a small Pty Ltd business and as of the new financial year I am about to take over the family owned company.
    There are a few things I need to find out.

    – Do I run both as separate companies or under the one ABN?
    – Do I run a separate set of books for both companies?
    – Should I run under one ABN and use registered trading names for each business?
    – I plan to build capital in the new company and possibly sell after a number of years, will this be affected if it is being run under a different ABN as a trading name?

    Any help would be great.

    Thanks!

    #1142378
    PRO
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    Hi

    I am a big believer in structural separation so that should you suffer any disasters in one the other is protected.

    Separate entities, separate books, separate abn’s.

    If the businesses were identical you may consider one being owned by the other, or sale of one to other etc.

    regards

    D

    #1142379
    sam_leader
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    Hi Summers,

    Welcome to FS! Good to hear you’re finding it a useful place to be.

    I see your questions have yielded a response and I’m sure others will jump in to help you out further.

    All the best with the transition.

    Sam

    #1142380
    KellyB
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    I think that it depends on the type of business and their associate risks, etc. I would probably run them as seperate businesses.

    It is possible to sell a ‘business’ and not the company, so if you do decide to combine them, you still do have an option to sell off just one.

    It is definately worth speaking to your accountant though. Our businesses is run through a trust as we get better tax breaks, so that may be a better alternative, and also if you are considering selling, you also need to consider future CGT implications (some structures get discounts on capital gains)

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