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  1. #1
    Noobish Pirate hueybot3000's Avatar
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    Default Help with business structure

    Does anyone know how would one go about running multiple ventures (let's call them brands) under one partnership?
    The IRD website doesn't seem to address this and everything I've read elsewhere suggests an umbrella company but our intention is to keep things between me and wifey without adding unnecessary tax implications.

    My thoughts are keep one set of accounts and just use different banks accounts for each "brand" so the paper trail for each is easy to follow. Is this a legitimate way of doing it?

  2. #2
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    Default Re: Help with business structure

    Umbrella company is right. Keeping it "separate" is your problem. As for tax purposes... sounds like you are trying to be dodgy in that sense because I never consider which way has unnecessary tax implications.

    So either operate as a partnership, handle your own ventures/brands but end of the day, you're a partnership working as one.

    I guess the easiest way to put it is say you are an electrician who partners with a plumber, both do different types of work but all for your partnership/company or... you both go different ways, maybe invest in each other if you want to be tied together in some kind of way.

  3. #3
    Noobish Pirate hueybot3000's Avatar
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    Default Re: Help with business structure

    Quote Originally Posted by Kame View Post
    Umbrella company is right. Keeping it "separate" is your problem. As for tax purposes... sounds like you are trying to be dodgy in that sense because I never consider which way has unnecessary tax implications.

    So either operate as a partnership, handle your own ventures/brands but end of the day, you're a partnership working as one.

    I guess the easiest way to put it is say you are an electrician who partners with a plumber, both do different types of work but all for your partnership/company or... you both go different ways, maybe invest in each other if you want to be tied together in some kind of way.
    Thanks Kame. Not trying to be dodgy. Just trying to keep it simple. We have no intention of growing things beyond the two of us and overheads are very low so there is minimal risk so we would prefer to keep our taxes limited to income tax only.
    I'm very familiar with the book keeping side of things but I can't quite get my head around the legal structure I am suggesting. IRD don't discuss it so I wasn't sure if that meant it can't be done, or just isn't done.

    If there is no issue with the way I propose then that's the way I'll set it up.

  4. #4
    Senior Member 1101's Avatar
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    Default Re: Help with business structure

    Legal entity, separate taxable entity ....

    You cant really separate out separate businesses ventures in a partnership, unless they become there own entity : ie a company.
    All the partnerships ventures are bundled up together legally and for tax purposes . The partnership is the entity (actually not really) and you cant separate one or two ventures for tax .
    Just as you cant (for tax etc) separate out sales of blue pens from sales of red books into their own taxable entities. Its all just your combined income .

    thats my best bush lawyer skills .
    I suggest you talk to an accountant . The answer will still be no .

  5. #5
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    Default Re: Help with business structure

    Again you are trying to treat it as separate. This will land you in hot water and also make your accounts harder, because no doubt you will want to separate everything to track one or the other. In other words you are better off being separate.

    Umbrella companies have this separation because each venture/brand has their own accounts which get sent to the head office. Each operating as their own entity
    but still working for the one.

    I guess you really need to look at is why a partnership when it seems you aren't working together? There's also that risk factor, when things may not work out, where one side may help the other out more. It's very risky in a sense that one partner can take it all and leave, it's not a relationship, there's no 50/50, their debt is your debt, the list goes on.

  6. #6
    Modulator Greg's Avatar
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    Default Re: Help with business structure

    Quote Originally Posted by hueybot3000 View Post
    Does anyone know how would one go about running multiple ventures (let's call them brands) under one partnership?
    The IRD website doesn't seem to address this and everything I've read elsewhere suggests an umbrella company but our intention is to keep things between me and wifey without adding unnecessary tax implications.

    My thoughts are keep one set of accounts and just use different banks accounts for each "brand" so the paper trail for each is easy to follow. Is this a legitimate way of doing it?
    I'd try the Company's Office's website to have a look-see if they link to an answer.
    Bugger the cancer. I'm suffering from terminal inertia.

  7. #7
    Rocket Dog WalOne's Avatar
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    Default Re: Help with business structure

    Seems to me as though you're on the learning curve that points to your keeping three separate sets of books. One for the Bank, one for the IRD, and the other for your own use so you really know what's going on.

    The best advice I can offer would be is to see a recommended chartered accountant. Let them advise on what the best structure should be. May cost you a little at the outset but potentially save you heaps in the long run. With respect to others (includes moi), don't rely solely on advice garnered on a non-accounting forum.

    Notwithstanding, Kame's comments are sound and worth repeating:

    I guess you really need to look at is why a partnership when it seems you aren't working together? There's also that risk factor, when things may not work out, where one side may help the other out more. It's very risky in a sense that one partner can take it all and leave, it's not a relationship, there's no 50/50, their debt is your debt, the list goes on.
    Best of luck to you both.

    Last edited by WalOne; 27-03-2018 at 12:16 PM.
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  8. #8
    Noobish Pirate hueybot3000's Avatar
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    Default Re: Help with business structure

    Thanks guys. I was hoping there was a straightforward option that I was missing but I'll give our accountant at work a call and suffer the bill that follows. Cheers!

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