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In this episode, Stuart and Mena explore one of the most common and misunderstood questions business owners face: how to tax-effectively get money into and out of a company. Whether you’re starting a business, investing in one, or managing retained profits, understanding the right structure from the outset can save you from costly mistakes later on.

They walk through the key ways to fund a company, either by loaning money in or contributing share capital, and explain when each method is most appropriate. If there are multiple owners involved, Stuart and Mena highlight the importance of setting clear expectations upfront to avoid confusion between lenders and shareholders.

They also cover how to extract profits tax-effectively, including dividend strategies, managing franking credits, and how using a discretionary trust as the shareholder can create valuable flexibility. Division 7A traps are explained in simple terms, with guidance on how to avoid triggering unintended tax liabilities when accessing company funds.

Finally, they compare company structures with trusts, and outline why companies may be ideal for trading businesses, despite their added complexity. This episode is packed with strategic tips and practical insights to help you set up and manage your company the smart way, right from day one.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.