As suggested, I am interested in knowing what is the typical company/trust structure that a couple would use for income streaming when starting a small business in 2014. I have been doing some reading and see that previously the bog standard structure was roughly:
Income would be distributed to the husband and wife up to the ~30% tax bracket, with the remaining income distributed to the bucket company but still used by the trust trading entity (essentially).
However, from my readings it would appear that this structure is no longer popular due to a change in tax rulings in late 09/10. What do you believe is the typical small business trust/company structure in today's market? Or has nothing changed?
- Discretionary Trust as the trading entity w/ corporate trustee
- Husband and Wife as beneficiaries of trust
- Additional corporate beneficiary as 'bucket' company
Income would be distributed to the husband and wife up to the ~30% tax bracket, with the remaining income distributed to the bucket company but still used by the trust trading entity (essentially).
However, from my readings it would appear that this structure is no longer popular due to a change in tax rulings in late 09/10. What do you believe is the typical small business trust/company structure in today's market? Or has nothing changed?