While a large proportion of all fishing licenses in South Australia are held by individuals, you can also have them registered under a Proprietary Limited (Private) Company. This includes Southern Zone Rock Lobster and Abalone Fishing Licenses as well as pots and quotas.
The benefits of registering your license to a company instead of an individual include:
- Limitation of Liability: As shareholders, your liability for business debts will be limited and your personal assets, like the family home, will be better protected.
- Tax benefits: Companies and sole traders have different tax treatments, including the ability to off-set losses, which may lower your tax threshold.
- Capital Raising: The ability to raise capital through offering shares to third parties.
- Insolvency: Under the corporations act, companies have a separate treatment regarding bankruptcy to individuals.
- Estate Planning: If you are concerned about how your fishing business may be split and/or maintained after your death, holding the license under a company may assist as companies benefit from perpetual succession.
Make an appointment with Tasman at Hume Taylor and Co to discuss applying for and making changes to your license, transferring your license, structuring your fishing business, as well as ensuring the safety of your business once you pass away.