Case Study - WA Company is Front Page News
Innovative Western Australian company that made front page news.
This company had outgrown its original structure and needed asset protection.
TLC Unlimbited operates a prosthetics business based in Belmont, Western Australia. As a leader in the field who manufacturers and distributes prosthetic devices, they made headlines in mid 2009 when a prosthetic finger designed in the United States was fitted to a local Perth patient. TLC Unlimbited negotiated to become sole distributers of the “bionic finger” technology in Australia. The finger can move and operate like a normal finger but requires no batteries or power source.
McGillivrays are proud to support this innovative, family business.
Asset protection is critical in any business but never more so when you have worked so hard for so long to get your business recognised as a leader in your chosen field. When McGillivrays took on TLC as a client we realised from our first review of their business structure they were dangerously exposed.
All of the assets of the business and the property they owned and operated from were in the same company name. We identified two main issues needing immediate attention. Our primary concern was one of asset protection but in this case holding land in a corporate entity was not very tax effective and would be costly in the long run.
In a world where litigation is becoming increasingly common TLC had all their assets exposed to unnecessary risk. McGillivrays immediately recommended a restructuring of the business.
The transfer of assets into an appropriate trust structure offered much better protection and a more flexible tax vehicle. TLC will enjoy considerable savings in tax both on a business and personal level.
We also assisted TLC establish a Self Managed Superannuation Fund, creating immediate tax relief and a means of taking control of their future Wealth Creation strategy. The benefits to the business and the business owners have been enormous and typical of what we do for our clients.
The saying “You don’t know, what you don’t know” sounds cliché but it has never been more relevant in today’s world. There are simply too many options for people in business to choose from. Simply too much to know. The best option is to choose a trusted advisor who knows about business. McGillivrays knows about business; that is what we are good at.
Ask us and you can find out just what we can do for you.
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