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thank you. Businesses tend to deal with matters such as the above in one of two main ways. First is that you simply proceed on the basis of one limited company and maintain indemnity insurance in respect of any potential claims. A limited company by its nature protects you in that it limits in almost all cases, claims to the assets of the company rather than your own personal assets. Indemnity insurance is capable of covering most other forms of risk.
However, some businesses, particularly where that business owns significant assets, will decide to operate by using a holding company to hold the assets of the business and then one or more trading companies to actually operate and transact the business of the business. The benefit of this is that it means that even where there is a successful claim against the trading business which for some reason is not covered by indemnity insurance, that claim would be limited to the assets of that trading company and not the assets of the holding company. Downsides mean that you potentially are operating and paying the costs of operating to different companies though the holding company can potentially remain dormant if it is not transacting business