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  • #1000435
    ShaunGA
    Member
    • Total posts: 3

    Hi All,

    A partner and I are looking at starting a new company ‘A’ (50/50 arrangement). Ideally Company A would be a wholly owned subsidiary by a Parent/Holding Company, with further subsidiaries planned. We’d like to start with the lowest cost option, while we build this new venture.

    My question is – Are you able to start by just registering Company A (and trade) and then at a later stage start the Parent Company who would then ‘buy/own’ Company A?

    Alternatively can one, register the Parent Company and us a different trading name (for Company A) that can be turned into a subsidiary at a later stage?

    Thanks for your input!
    Cheers
    Shaun

    #1224352
    JamesMillar
    Participant
    • Total posts: 1,675
    ShaunGA, post: 271231, member: 110816 wrote:
    Hi All,

    A partner and I are looking at starting a new company ‘A’ (50/50 arrangement). Ideally Company A would be a wholly owned subsidiary by a Parent/Holding Company, with further subsidiaries planned. We’d like to start with the lowest cost option, while we build this new venture.

    My question is – Are you able to start by just registering Company A (and trade) and then at a later stage start the Parent Company who would then ‘buy/own’ Company A?

    Alternatively can one, register the Parent Company and us a different trading name (for Company A) that can be turned into a subsidiary at a later stage?

    Thanks for your input!
    Cheers
    Shaun

    Hi Shaun

    There are lots of potential issues to consider in this. Did you guys consider seeing an accountant?

    The wrong structural decision could easily cost you hundreds of thousands of dollars (maybe more).

    #1224353
    ShaunGA
    Member
    • Total posts: 3
    JamesMillar, post: 271235, member: 5318 wrote:
    Hi Shaun

    There are lots of potential issues to consider in this. Did you guys consider seeing an accountant?

    The wrong structural decision could easily cost you hundreds of thousands of dollars (maybe more).

    Thanks for your reply James, yes we definitely will sit down with one. Was looking to get my head around potential structure options prior to sitting down, but realise that might just be a waste of time and should jump straight to a professional instead

    #1224354
    JamesMillar
    Participant
    • Total posts: 1,675
    ShaunGA, post: 271236, member: 110816 wrote:
    Thanks for your reply James, yes we definitely will sit down with one. Was looking to get my head around potential structure options prior to sitting down, but realise that might just be a waste of time and should jump straight to a professional instead

    Research can be helpful but given 99.9% of business owners are not career tax professionals you may find research taking you down the wrong path.

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