Question: What is the best business structure for my company and raising capital?
If you are considering raising capital, you should evaluate whether your business structure facilitates investment and how well it protects your business’ interests. Sophisticated investors such as professional investors and venture capital firms will expect to see a dual-company structure. A dual company structure offers a clear separation between:
your business’ assets (the holding company houses all assets); and
liability while trading (an operating company or subsidiary may incur liability).
The holding company protects assets from any liabilities that the operating company may incur. Investors will expect your business structure to:
offer limited liability,
protect your business assets; and
allow investment where your valuable assets such as intellectual property are held.
In a dual-company structure, an investor will hold their shares in the same location of all the assets, the holding company.
Answered by Kirstie Le Lievre
Kirstie is a lawyer in the general commercial, disputes, franchising and leasing teams at LegalVision. Kirstie has a background in civil litigation and project management.
Get in Touch
Fill out the form below and a LegalVision team member will be in touch shortly!
Top 20 Startups in Australia - 2018 LinkedIn Startups List
NewLaw Firm of the Year Finalist – 2018 Australian Law Awards
Law Firm of the Year Finalist – 2018 Australasian Law Awards
AFR Fast 100 List – 2018 Australian Financial Review
NewLaw Firm of the Year – 2017 Australian Law Awards
Customer Service Experience of the Year – 2017 Optus My Business Awards
We collect and store information about you. Let us explain why we do this.
What information do you collect?
We collect a range of data about you, including your contact details, legal issues and data on how you use our website.
How do you collect information?
We collect information over the phone, by email and through our website.
What do you do with this information?
We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.
How do I contact you?
You can always see what data you’ve stored with us.
Questions, comments or complaints? Reach out on 1300 544 755 or email us at email@example.com