Aquiring a shareholding in another business

[SumoMedaGroup]

Hi All

I have been offered a shareholding/owner directorship in a limited company and was wondering if its best to take the shareholding as myself as an individual, or as my own limited company (my ltd owns percentage of the other ltd)

Are there any benefits or pitfalls to either

Cheers

Marc

 

[ImranR]

Through your own limited company, you would have twice the accounting fee (one for the new company and one for your ltd company).

However, you can distribute the dividends and salary more efficiently (tax) through your own Ltd company.

I'm no expert but best to have an accountant verify this.

 

[Ziggrs]

I am also thinking in terms of increased costs, incl taxes which you might pay when you have two separate shareholding ownership. Anyway, you should consult your account and see what would be your overall expenses and seek the ways to decrease them

 

[Millerd]

Although there may be additional costs you reduce the risk. If the shareholding is in your personal name there is the risk of losing your personal assets in the event of something going wrong and there is a claim made against the company and/or shareholders.
The benefit of holding the shareholding in a company is that this liability is limited. It is far less stressful liquidating a company than losing everything ... but this depends on how your invetments are
To protect my personal liability I have set up a trust that holds my shares so that if there is an unforeseen claims my personal assets are protected.