Share structure
Alphabet shares and share structure. Getting the share structure right early is cheap. Fixing it later, usually under time pressure from an investor or a buyer, is not.
When you set up a business and it’s just you or a few people, the share structure is usually very basic and that’s fine.
However, in the future the following things may happen:
- The owners may want to take dividends
- Shareholders leave and new ones join
- The business seeks investment
- The business wants to reward employees with shares
- There is a disagreement between the shareholders
- The business is sold
If the structure, the class of shares, the voting rights and underlying agreements are not robust then all of these things can cause a massive headache.
It’s best to speak to an accountant at an early stage to make sure your current structure is fit for purpose and that you understand the main considerations when making decisions about your business.
Which creatives need to deal with share structures?
Alphabet shares are separate classes of ordinary share (typically labelled A, B and C) that let a company declare different dividends to different shareholders.
They’re commonly used where shareholders contribute differently to a business or need different levels of income.
WallsMan Creative advises UK creative companies on whether alphabet shares are appropriate, how to implement them, and the tax risks that come with them.
Founders bringing in a co-founder, spouse or family member who needs a different level of dividend income.
Studios and agencies rewarding senior people with equity, or preparing to.
Companies preparing to raise, where the existing structure needs to survive investor scrutiny.
Anyone who set the company up online in an afternoon and now has 100 ordinary shares split down the middle that no longer reflects reality.
Frequently Asked Questions about share structure
Share structure advice helps you design or review the ownership and allocation of shares in your company to support goals like investment, control, and tax efficiency.
Different share structures can impact control, tax liabilities, investment terms, and exit planning – getting it right can protect your interests and value.
We look at current share classes, ownership percentages, voting rights, dividend rights, founder protections, and tax implications.
We can model and recommend share structures. The decision is up to you.
Different share classes and allocations can influence capital gains, income tax on dividends, and different reliefs, so proper structuring supports better tax outcomes.
We'll need your current articles of association, cap table, shareholder agreements, and any draft investor term sheets if available.
Absolutely! Share structure is often a core element of growth, funding, and exit planning, and we coordinate it with your broader strategy.