If you don’t apply then the company will remain as a QC (Qualifying Company) but without the ability to attribute losses to shareholders. Alternatively, you may want to exit the QC regime and become a standard company or restructure the ownership of their business/assets so they are owned by a Partnership, a Limited Partnership or a Sole Trader.
Chat to one of the friendly team at Boutique Financial www.boutiquefinancial.co.nz if you’d like help with your LTC election or to discover the most profitable option for you. You might also find some incredibly helpful (and free, yes free!) advice in our other LTC blog posts: http://www.boutiquefinancial.co.nz/wordpress/2011/10/look-through-company-traps/