What’s the right structure for your growing business? If you’re a business owner managing more than one company, or if you’re planning for growth, the idea of a holding company might feel like something only big corporates need. But, there’s a good reason why even small businesses should be thinking about their structure from day one.

Start with the End in Mind 

We believe your business should serve your goals, not the other way around. That’s why we always start with one question: Why are you running this business? Knowing your end goal helps shape every financial decision, including when to move from sole trader to limited company, and when to create a holding structure.

From Sole Trader to Limited Company 

There comes a point where staying as a sole trader stops making sense. Once your income moves into the 40% tax bracket, it’s time to consider a limited company. Limited companies offer more than just better tax rates, they provide legal separation, risk protection, and flexibility in how you extract income.

Michael and Adam discuss why there’s a good reason why even small businesses should be thinking about their structure from day one in this week’s Business Success Conversation.

When Two Becomes Three… and More 

Growth often leads to multiple ventures. You start with one business, then spot new opportunities and before you know it, you’ve got two or three limited companies under your name. But without a group structure, money can’t flow easily between them without triggering tax liabilities.

Enter the Holding Company 

A holding company, or parent company, sits above your businesses and acts as a central hub. It allows tax-exempt money to move between your businesses and helps you manage income distribution and risk across the group. It also gives you the power to:

• Ring-fence your assets
• Separate high-risk activities
• Simplify shareholder structures
• Choose when and how you take dividends

Why It Matters 

Without a holding company, your businesses, and personal finances, are directly connected. If something goes wrong in one company, it could put the others at risk. With a holding company in place, each business is legally separate, protecting you and your assets.

Every Situation is Unique 

Of course, every business is different. A holding company isn’t right for everyone. That’s why personalised advice is essential. At Carthy Accountants, we work closely with business owners at every stage to track growth, restructure where needed, and make sure your business setup works for you.

Get the Business You Want

Thinking about your future structure now could save you headaches later. If you’re starting to grow, or already juggling multiple companies, get in touch. We’ll help you explore whether a holding company is the right move, and show you how to make it work.

Need help with business structure planning?

Get in touch with Carthy Accountants today. Helping you get the business you want.