Can someone explain to me.......
Discussion
I'm not very "businessy", went self employed in IT for a short time, got sick of dealing with stupid people who wanted everything for free.
So here's something i'm confused about........
One man, 6 registered businesses, 2 further dissolved businesses, no employees, all businesses doing the same thing (engineering related tradesman), 2 started within a month of each other, and links to 3 other businesses owned by perhaps a friend, again same trade. None of these businesses has had any advertising, a website or even an entry in directory listings like the yellow pages.
Just seems completely bizarre!!
Sounds like SPV's) - special purpose vehicles - quite common in property and finance to containerise risk.
Works something like this:
Ltd company A taxes contracts X, Y, Z, - contract Y goes bust and leaves company A liable for debts which would be offset against profits from contract X - Z.
ltd company A sets up ltd company X Y, Z - Y goes bust and losses are limited to whatever Y has, profits from X and Z are protected as seperate entities.
it's why in major corporations you'll have assets split into a holding company, rented to a operating company, so if the operating company goes bust in say one territory, it doesn't effect other operating companies and no claim can be made on key assets, ip portfolios etc.
Works something like this:
Ltd company A taxes contracts X, Y, Z, - contract Y goes bust and leaves company A liable for debts which would be offset against profits from contract X - Z.
ltd company A sets up ltd company X Y, Z - Y goes bust and losses are limited to whatever Y has, profits from X and Z are protected as seperate entities.
it's why in major corporations you'll have assets split into a holding company, rented to a operating company, so if the operating company goes bust in say one territory, it doesn't effect other operating companies and no claim can be made on key assets, ip portfolios etc.
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