At Kala Atkinson, we love witnessing the growth and success of our clients, and one story that truly stands out is how we helped a sole trader evolve into a group structure, enabling sustainable growth and profitability. Here's how we made it happen.
The Challenge: From Sole Trader to Limited Company
Our client, Simon, started as a sole trader in the construction industry. With a growing customer base, he realised his business was expanding beyond what his sole trader structure could effectively support. Simon needed advice on how to protect his personal assets, manage taxes more efficiently, and position his business for continued growth.
That’s where we stepped in.
Our Approach: Transition to a Limited Company
As his dedicated accountant, we advised Simon to transition his business from a sole trader to a limited company. This move provided Simon with several benefits:
Tax Efficiency: By becoming a limited company, Simon could take advantage of more tax-efficient strategies, including drawing dividends and reducing his overall tax liability.
Liability Protection: The new structure gave Simon limited liability, protecting his personal assets in the event of any business-related challenges.
Credibility and Growth: Operating as a limited company also improved his business’s credibility with clients, suppliers, and potential investors, positioning him for further growth.
We managed the entire incorporation process for Simon, ensuring the transition was seamless and that all legal and financial obligations were met. We also implemented a bookkeeping system that streamlined his financial operations and provided real-time insights into his company’s health.
S Osborne Decorators Ltd was born.
The Growth: Expanding into a Group Structure
With the limited company structure in place, Simon's business continued to thrive, and within two years, he saw opportunities to expand into new sectors. He wanted to diversify his business activities while maintaining financial clarity across different ventures.
After consulting with us, Simon decided to create a group structure, forming multiple subsidiaries under a parent company. Each new entity was tailored to a different business sector while allowing him to:
Separate Financials: Each company under the group structure could operate independently with separate financials, which made it easier to track performance, profitability, and risk.
Tax Benefits: We advised on efficient tax planning strategies within the group structure, helping him benefit from group relief and shared costs between the companies.
Business Growth: A group structure provided Simon with the flexibility to acquire or create new companies while keeping them under the same umbrella.
Investments: A group structure allows Simon to invest excess cash from his trading companies separating trade from long term investment assets.
We managed the complex legal and financial aspects of creating the group structure, including the establishment of holding and subsidiary companies and intercompany agreements. This allowed Simon to focus on his business’s strategic direction while we handled the financial intricacies.
The Results: A Thriving Business Group
Today, Simon oversees a thriving business group, with multiple companies in various sectors. Thanks to his new structure, he’s been able to expand and diversify without compromising operational efficiency or financial transparency. By leveraging our tailored accounting and financial advice, Simon not only safeguarded his business but also set himself up for long-term growth and success.
Why Work with Kala Atkinson?
If you’re a sole trader or business owner looking to scale, having the right accounting partner can make all the difference. We specialise in helping businesses transition smoothly between structures, offering strategic financial advice that supports growth, profitability, and sustainability.
Start a conversation today - book a call with our experts.
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