Costs & Pitfalls of DIY Business Structures
The Costs & Pitfalls of DIY Business Structures
While you think you’ll save a few dollars going online to set up a company or trust yourself, the DIY approach is a false economy. Like most accounting firms, Holmans use specialist providers for business structures to ensure we understand the contents and workings of the documents being produced. Problems can arise when a client walks into our firm with a DIY company and/or trust. At this point, we need to conduct a lengthy review of your new structure and the complex legal documents, which ultimately results in additional costs to you.
Along with these costs comes the risk that the company or trust you’ve set up may not operate in the way it needs to. Automated online providers located through web searches are just that – automated! There is no human involvement in the ordering process if something isn’t correct.
The responsibility for accuracy rests squarely with you – even the regulator, ASIC, is not liable for issues if you get it wrong. And there are no simple fixes.
This is where we come into play. While there is an added initial cost involved in using us to create your company or trust, it’s vital to ensure that everything is set up properly and is compliant from the get-go.
Here are some of the DIY risks you might face:
High costs to fix issues
The DIY approach runs the real risk of your structure being incorrectly established, with a rectification bill that may run out thousands of dollars.
Many online providers supply deficient documents, and ASIC itself supplies no documents at all.
Tax penalties & other consequences
There could be significant tax, legal and commercial implications if your company and/or trust is not correctly established.
Reviews & amendments cost you
It takes time for us to review and amend documents that we haven’t seen before, meaning extra costs could be incurred.
The bottom line is that the certainty you gain by using us to establish business structures for you, far outweighs the few dollars you think you’re saving by attempting to DIY.