There are many areas where we advise clients to be ‘storm ready’, such as making sure they finances are in order and any lines of credit agreed and in place. We challenge on the fallacy of discounting prices to win business and encourage them to take the counterintuitive step of raising prices, which is always a better option. In fact if there are any aspects of your business that could do with a health check to see if you are in good shape, give us a call. We have seen thousands of businesses and several recessions (certainly the older ones of us have!), so we have considerable experience to know how to get businesses in good shape.
We must also be mindful of risk. We have covered it many times over the years, but still find businesses that are not set up in the right way.
So let’s talk about business structures.
SO WHAT ARE THE OPTIONS ?
There are five main types of business structures that we are going to focus on. Each structure has it’s own tax and also other requirements that must be followed, we want to share these with you.
Top of the structure we have A CORPORATE GROUP
This is two or more companies joined together. Shareholders own shares in the top ‘Holding’ company, which in turn owns others. Value can be protected in the Holding company away from the risks within each trading subsidiary.
Responsibilities
- Business must be registered on Companies House
- Business needs to pay corporation tax
- Required to submit reports to Companies House and HMRC
- Submit an annual company tax return
To find out about the other types of structures and there responsibilities, check out our infographic Types of Business Structures and decide if you are following the correct structure for your business.
