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About Product
Every business holds key assets including databases, business processes, trademarks, logos and other property which may be put at risk from litigation of any form. The Business Protector enables these assets to be transferred from a business entity to a separate company or trust for protection.
► $795.00 (inc GST) - OR provided under your unlimited membership
► The master document has been signed off by LY Legal and is congruent with Australian law.
General Information
The Business Protector consists of a Transfer of Property from one entity to another and then a license of the property back to the trading entity or to another entity.
Benefits
There are several benefits of the Business Protector including, amongst other things:
- Protection of key business assets
- Full support provided by LY Legal lawyers
- Transfer and License back of business property
- Ensure that capital gains tax and stamp duties are determined and where possible use small business CGT concessions
- License fees payable from trading entity to safe Family Protection Trust or other entity
Frequently Asked Questions
What business assets can be transferred?
Any business asset that is integral to the business including intellectual property, databases, cars, tools plus marketing and business processes.
Where do we transfer the assets?
It should be a safe entity that only holds assets with no potential litigation exposure. This may be a Leading Member Discretionary Trust, a Family Protection Trust or a company.
What are the tax consequences?
There will be tax consequences generally on the transfer and capital gains tax plus depreciation ‘claw’ backs need to be assessed. Small business concessions may be applied to reduce any taxes.
What value or price should be used?
Market value. As the transfer is between related parties the capital gains tax rules will assume a market value consideration has been paid. This may not be an issue for transfers which can claim a CGT exemption.
Does the license have to go back to the trading entity?
Generally if the business is run from a trading entity then it will need to licensed back so that business can be carried on. However it can be licensed to another trading entity.
How do we determine licence fees?
Again market valuation is required.
How long does this document take to assemble?
Depending on the complexity of the data, this document should take approximately 2-5 mins to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .
Is this document a legal document?
All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.
What lawyers sign off on the LYD documents?
All LYD documents are prepared and signed off by LY Legal.
Are the LYD documents reviewed regularly?
All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.
Can I get a sample of this document?
Yes, please email support@lyd.com.au to request a sample document for you to review.