Hi. Still in Permie role at the moment but trying to set up a contracting opportunity. This is my situation......
I have been approached by a guy (lets call him Mr X) who does similar work to me with his own business (he is a one man Ltd). He is trying to expand his business and wants to use a number (around 6) associates to get more work. I know Mr X well and also 2 of the other potential associates. I also trust Mr X. Mr X has said that he is not interested in making extra money out of his associates but rather increase the profile of his business and win bigger contracts. Mr X's accountant has suggested a possible legal structure for us to work to. This involves setting up another company, majority owned by Mr X's current company and then the associates potentially becoming directors and share holders of that company and taking their remuneration by combination of salary and dividends. I need someone to explain to me what the benefits/drawbacks of this would be in relation to just setting up myself as a Ltd company and invoicing Mr X's company for my work. Do I need to speak to a companies legal bod or will an accountant do? Any recommendation of legal ppl to speak to would be appreciated
Yours in anticipation.
I have been approached by a guy (lets call him Mr X) who does similar work to me with his own business (he is a one man Ltd). He is trying to expand his business and wants to use a number (around 6) associates to get more work. I know Mr X well and also 2 of the other potential associates. I also trust Mr X. Mr X has said that he is not interested in making extra money out of his associates but rather increase the profile of his business and win bigger contracts. Mr X's accountant has suggested a possible legal structure for us to work to. This involves setting up another company, majority owned by Mr X's current company and then the associates potentially becoming directors and share holders of that company and taking their remuneration by combination of salary and dividends. I need someone to explain to me what the benefits/drawbacks of this would be in relation to just setting up myself as a Ltd company and invoicing Mr X's company for my work. Do I need to speak to a companies legal bod or will an accountant do? Any recommendation of legal ppl to speak to would be appreciated
Yours in anticipation.
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