Look Through Company is the structure replacing the LAQC Company
I attended a WHK seminar last night about the coming changes to the LAQC structure. It is being replaced by an LTC – Look Through Company. These changes are still in draft format.
What a Look Through Company means for Directors
From what I understood, the main changes will be around attributing losses, it will be limited to the financial risk held by each shareholder. For example, if you got married, one person had $100k to invest, and the other didn’t, the losses would only be attributable to the shareholder who introduced the funds, with the losses being carried forward for the other shareholder. However, if the other shareholder had signed a personal guarantee with the bank, then they would have a financial risk, so could receive losses.
There are other limits and things to consider with this that I recommend you talk to your accountants about the structure that would best suit your company and shareholders. A decision will need to be made about the structure that will suit you.
Depending on the structure, you may need to revalue properties and you may also need to refinance, so if you are on fixed rates, you may need to pay break fees. There are some options here – Sole Trader, QC, regular Company, LTC, Limited Partnerships etc. They all have benefits and flaws.
So again, please contact your accountant, if you would like a referral to a suitable accountant, please call me.
Disclaimer: I am not a financial advisor, so please don’t assume what I have said is fact, it is based on my memory and my notes.
Glennis Stuckey 24/11/10
WHK is now Crowe Horwath. Follow the link for their contact details. Crowe Horwath offers services such as small business accounting, auditing, risk management, and business advice.