Financial Structures?

[adan]

Hey,
I have a LAQC company set up. There are now some opportunities to invest in flicks and trades that are in no way considered buy and hold.
I have a line of credit approved in my name, so does this mean I need to change the ownership of this line of credit into a trust so as not to taint my name in regards to my buy and hold company? Or can I use my line of credit to purchase what I want, and then later direct my expenditure to the appropriate company?
I have been told that it is best to have my line of credit set up in the name of my LAQC and trading trust equally so as to have no cross contamination. Is this necessary, or can I place my funds as I wish without possible comebacks?
Regards

 

[albert]

Hello Adan,
IN theory you should charge interest (if one is an overseas company and one a NZ company you MUST charge market interest) but there is no need. (note in the UK you would have to)

I can see it as a good idea to have say a central family trust that is cash rich. it loans money to your various entities and earns interest. Therefore, trust pays more tax but entities make more losses (I am sure some of you can figure out the implications at current tax rates). It is also a way of getting money (by interest receipts) into a family trust without having to gift it.
Many Thanks