4.0
2 Aug 2024
Recommend
CEO approval
Business outlook
Pros
Limited liability: Investors are only at risk of losing the money they invest in shares, which can make shareholders more likely to invest. Tax advantages: Company subsidiaries can reduce tax liabilities for the parent company.
Cons
Cost: Companies can be expensive to establish, maintain, and wind up. They also require higher set-up and administration costs, as well as ongoing annual fees. Management: Company structures can be more complex to manage than other business structures, and may require a higher level of business understanding.