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Should I incorporate more than one company?

I already operate a company and am considering starting up a new business that also operates as a company or a different business structure. I've been told that having a group of companies operating together can have a lot of advantages. Is this true?
Asked in Newcastle - Newcastle and Lake Macquarie, NSW, 18-11-2014
3 Lawyer Answered
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Lawyer Answers (3): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
  • It is true that operating multiple businesses as a group of companies can have several advantages.
  • This usually depends on what type of business you are operating, the size and the complexity of your company's operations.
  •  The primary advantage of operating as a group is that losses from one company can be transferred to another. However there must be 100% common ownership and a parent-subsidiary relationship must exist.
  • For family businesses it can be advantageous to operate one business through a company and a second as a trust. This provides for the tax advantages of a company structure and the flexibility in distributions of a trust.
  • Your choices when combining structures are very wide and it is important to speak to a lawyer who can advise you of the most efficient way of mixing structures for maximum gain. You can look for a lawyer near you in our free Find a Lawyer directory.

Forum Posts

  1. 22-12-2014, 04:57 AM #2
    Chris Hutchison
    Chris Hutchison
    Australian Prudential Regulation Authority
    Join Date: Oct 2014 Location: Wamberal, NSW Posts: 3
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  2. 18-05-2015, 01:14 AM #3

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