Do I need to form a holding company?

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Hey

I was just wondering whether it was a requirement to form a holding company if you want to use a company to buy and sell assets. Can I simply do this as an individual, or do I need to form a holding company? Thanks

Answers

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There is no need to set up a holding company to buy and sell assets, you can most certainly do that as an individual. However, a company is often the better choice for such purposes.

A limited company is a legal ‘person’, so trading through a company is the best way to protect your own finances and assets from being seized by creditors. If your company were to become insolvent, or any legal claims were brought against it, the company would be liable - not you.

If you do not have the protection of a limited liability company, you would be held personally accountable for all debts and liabilities arising from your trading activities. This could be quite risky, depending on what you are planning to do.

a year ago
 

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