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I suggest there is value in optimizing your own personal tax structure, though. In many countries, setting up a family trust to own your company shares provides
by ttul 2y ago
I suggest there is value in optimizing your own personal tax structure, though. In many countries, setting up a family trust to own your company shares provides enormous upside if you have a large exit, because your family members - including children, spouses, and even distant relatives - can all make use of their personal capital gains exemptions to shelter more of the gain from tax. Nearly everyone I know with a mature tech company has made this move and many people I know who have exited have thanked the lord they did it.
Your mileage will vary depending on jurisdiction and governments in many jurisdictions have been making changes to tax law to reduce the use of trusts in this manner. But the advantage still remains in many places.
- readthenotes1 2y agoI was not able to retire until I set up a income mechanism that minimize taxes. When they call it an obsession, but taxes are a huge effect on received income and so incredibly important in many jurisdictions...