Hi all, I have a question to the brokers, planners, accountants, lawyers. A colleague and I are both looking at starting a mortgage broking business together, in order to combine resources, marketing, aggregation synergies etc. Currently we both operate under our own private companies as sole director/shareholders (eg. Tom Pty Ltd and Harry Pty Ltd). Understand specific advice can't be given, but in general what would be the most effective way to structure the new business (trust vs company vs partnership vs combo) in order to: - Ensure each partner is distributed their fair share of upfront and trail comms, based on the deals they write. - Allow the most tax effectiveness. - Potentially allow future partners to buy into the brokerage. - Allow potential to grow in the future and put on salaried loan writers - Allow a partner to exit the business and sell their share (This also poses the question of who "owns" each partner's loan book - owned individually or as a collective of the new business?). I've been reading this thread from the old SS: Bog standard company/trust structure in 2014? - Somersoft Property Investment Forums However, the circumstances are different because it involves 2 different families, rather than the typical husband and wife scenario when this question is asked on forums. After reading the SS thread, some potential suggestions so far have been: - Create a discretionary trust as the trading entity and have Tom Pty Ltd and Harry Pty Ltd as beneficiaries, aggregator pays income into Trust and trust distributes income based on deals written. - Form a new private company (New company Pty Ltd) with a Trust as a shareholder. New company Pty Ltd pays dividends to the trust. Trust distributes to Tom Pty Ltd and Harry Pty Ltd based on their deals. - Or would it be better do away with Tom Pty Ltd and Harry Pty Ltd altogether and simply have each individual as direct beneficiaries. Note: salaries won't be paid in the early years - just income earned writing loans. We will be getting professional advice from an accountant, but would love to get the general opinion of the PC community, as I'm sure many of the finance professionals have possibly come across this over the years, dealing with any partnerships of commission book-based businesses, eg. mortgage/stock/insurance brokers, etc. Thanks for reading.