In episode 133 Shaz looked at the benefits of using a holding company and in this episode, he balances things up with great content about the possible disadvantages that you should be aware of
Review both the benefits and the possible disadvantages and take a holistic view to make a decision about what structure is the best for you and means you can grow and develop your business the way you want to
KEY TAKEAWAYS
You may need an audit if your business structure turnover exceeds 10.2 million, you have fifty-plus employees and your assets have a value of more than 5.1 million
There are costs associated with an audit and it can take time
The costs for compliance can be higher, you will be paying accountancy fees for each company
With the tax regulations coming into force in 2023 smaller businesses will be liable for the 19% corporation tax rate
You could be paying the marginal or higher rate of tax with the holding company structure
Each company needs a separate bank account
There can be additional complications with needing multiple accounts
There are fewer funders available when you have this structure and there may be less funds available and the interest could be higher
Your growth may be restricted due to constraints on funding
Choose the structure that gives you the optimum for your goals and what you want to achieve
BEST MOMENTS
‘Look at the benefits and the disadvantages carefully to decide what’s best for you’
‘Don’t always make costs the deciding factor, other benefits can make it worthwhile for you’
‘Take a holistic view about what you want’
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
YouTube.
