How to structure and run a new consultancy?

[Lance]

I'd say that it's the other way around, the dev guys have to accept that without the sales guy they have no money coming in.

I think we're saying the same thing.

Let's be clear though. This was an example I've seen work and not what the OP was looking at.

[Lance]

Just use A B And C shares and declare dividends according to how much each of you bills the client, less some agreed amount to pay the accountant etc.

Isn't that going to fall into settlements legislation?
Or be classed as an MSC?

[kaiser78]

It it was my spouse, going down well wouldn't be a problem at all.

I had to read that post twice then...

[northernladuk]

I had to read that post twice then...

[tomtomagain]

Situation: myself and 2 other contractors have recently had our contracts not renewed by the end client because the central IT dept we work for has had its budget cut. The 3 of us were in effect the only IT team.

Interesting thread with some good robust advice.

There's one other factor that I didn't see anyone mention but I think is worth throwing in.

THE CLIENT DOES NOT HAVE ANY MONEY.

They've just slashed their IT team. There may possibly be departments that "Need" IT work .... but how do you know they have any money?

I "need" a new car ... but I ain't getting one for a six months 'cos I'm skint.

Company director says to IT director : "Save money. Get rid of your contractors. "

Marketing director isn't just going to then re-hire the same 3 guys on the same rate.