About the Client

Our client had been operating as a sole trader in the transport industry, working as a contract truck driver.

They were recently presented with an exciting opportunity: to purchase an established trucking business, which included two trucks and direct service contracts with customers.

The Challenge

While this opportunity was promising, the client had significant concerns about the associated risks, particularly now that they would be:

• Purchasing high-value assets (two trucks).
• Taking on direct contracts with clients.
• Employing staff for the first time.

The client was particularly worried that a business failure or legal liability (such as an accident, causing

damage to valuable goods) could put their personal assets—including their family home—at risk

Our Solution: Strategic Business Structuring

To protect the client’s assets, while enabling the new business venture to operate effectively, SaabTeece recommended a two-entity structure:

1. Operational Entity

A new company was established to manage the day-to-day operations of the trucking business, including all client contracts and staff employment. This entity would carry out the business activities but own no major assets.

2. Asset-Holding Entity

A separate entity was created to own the trucks, which would then be leased to the operational entity. This structure ensured that the trucks were legally separated from any business liabilities.

3. Formal Lease Agreement

A commercial lease arrangement was established between the two entities, setting a market-rate lease fee for the use of the trucks by the operational entity.

The Outcome

This structure provided the client with a strong layer of protection and significant peace of mind:

• The operational entity is now limited in liability to its own assets, which are minimal.
• The trucks are safeguarded within a separate entity, isolated from the operational risks of the business.
• Most importantly, the client’s personal home and assets are protected, even in the event of business failure or legal claims.

Through strategic structuring and tailored advice, the client was able to take on their new venture with confidence, knowing that their hard-earned personal assets were secure.

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