Hi,
Looking for some advice.
I run a reasonably successful business, and have amassed 7 figures in profit in the business & I'm the sole director of the company with no other shareholders.
I wish to start investing in a variety of things to build my wealth, shares, stocks, etc - however I want to do this through a separate company, so the income is not mixed up with the daily ins/outs of my main business.
From a brief conversation with an accountant, he mentioned this would be a holding company. So I'd have my main company which runs my daily business, and then the holding company above that company would be for investments etc.
I just thought I'd post here for a little advice on how this all works, and what is best practice?
I asked my own accountant and they said this, please let me know if this sounds right?
If you wish to incorporate a new company as a certain % of shareholding, we can do so. You will then sell some of your shares to that company. That company can do investments from the dividend or loan that "existing company" makes to it.
If you and the other company are shareholders of "existing company", the dividend will have to be shared in that shareholding ratio each time you take dividend. But you can lend from "existing company" to the other company without making it as a dividend.
If you wish to only do sharedealing with "existing company" funds, you can of course open a new bank account for "existing company" where you can transfer some funds to start the investment process.
It would be useful if someone broke it down for me, as my accountant doesn't explain things too well.
Thanks in advance.
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