Ltd Co formation online, who to use and number of Shares to issue ??

[Jason D]

2 things

1 - Why do you disgaree? What possible justification could the revenue obect to a 1/5 shareholding if M@H's wife not only puts her money into the business but also acts as company secretary? Arctic different scenario. He was sole fee earner yet they had 50/50 shareholding.

2. You should get the shareholding right at the outset. This will save time and expense later and also show your intentions from the outset.

[THEPUMA]

2 things

1 - Why do you disgaree? What possible justification could the revenue obect to a 1/5 shareholding if M@H's wife not only puts her money into the business but also acts as company secretary? Arctic different scenario. He was sole fee earner yet they had 50/50 shareholding.

2. You should get the shareholding right at the outset. This will save time and expense later and also show your intentions from the outset.

1) HMRC would object. Read their guide to the settlements legislation.

2) Because the exemption in what was s660 requires there to be an outright gift. So you cannot use this exemption unless you issue all the shares to one spouse and then gift some to the other.

Sorry for brief response got to go out but will elaborate later if noone else does in the meantime.

[Lewis]

You should get the shareholding right at the outset. This will save time and expense later and also show your intentions from the outset.

There is an argument that incorporating with main fee earner having 100% of shares and then gifting 50% to other half bypasses the Artic situation. There is some special exemption clause in the s660 legislation I think. But I don't know any more than that. I am sure someone here will know more... but there is a valid reason for doing a later share split.

[Lewis]

So you cannot use this exemption unless you issue all the shares to one spouse and then gift some to the other.

Out of interest, how do you "gift shares"? Is there a form you send to companies house?

[Bluebird]

I used http://www.uk-plc.net/Great service & cheap.

[M@H]

When you chaps talk about % of shares to each partner, are you issuing and allocating all the shares in the company (in my example all 1000) at/near the start, or is there a purpose for leaving a large chunk of shares un-issued in the company..?

Many thanks,
Matt

[Lewis]

When you chaps talk about % of shares to each partner, are you issuing and allocating all the shares in the company (in my example all 1000) at/near the start, or is there a purpose for leaving a large chunk of shares un-issued in the company..?

Many thanks,
Matt

Leave as large a chunk as possible (a) to reduce the amount you have to pay for them in first place, e.g. 10 shares = £10 (usually) and 1000 shares = £1000 and (b) to provide as much flexibility to change the share structure going forward. i.e. if you use up all 1000 at the start you have limited flexibility left. It is common to incorporate with just 10 shares.

[oraclesmith]

I used Hanover. They're OK.

Re. share allocation ; you should get this right from the outset as it is more difficult to allocate more shares when the company is trading because technically they must be 'bought' for market price. What proportion depends on things like: your own earnings potential and tax status; your wife/partners job/tax situation; your likely IR35 status (ie. whether you will end up paying substantial divi's) and other things.

eg. S660a works in our favour at the moment, because my wife is already a higher rate taxpayer, so I pay the tax on her divi's.

One piece of advice from my solicitor was that it helps if your wife holds some kind of shareholding and an officer position (eg. comp sec) so there is someone to take over the reins of the company if something should happen to you.

Making your wife comp.sec is no problem. She does not have to hold any shares to do this, it is only an officer role.

In my opinion.,

[Cooperinliverp00l]

forget the name of company i used but i paid £85 inc VAT which was there Gold package it got me.

Company formed within couple of hours with number supplied via e-mail and coporation certificate e-mailed within 24 hours. Then within 3 days i had official printed copy of Corporation certificate along with Company register in a nice ring binder along with all the other company detials like mutiple copies of your M&A.

Just search on google for one there are plenty to use and go for one about the £70 as the cheaper ones don't always supply things (is what i found when reading up on them)

[ASB]

1) HMRC would object. Read their guide to the settlements legislation.

2) Because the exemption in what was s660 requires there to be an outright gift. So you cannot use this exemption unless you issue all the shares to one spouse and then gift some to the other.

Sorry for brief response got to go out but will elaborate later if noone else does in the meantime.

Regarding 2.

See: http://www.hmrc.gov.uk/practitioners/guide_sba.pdf page 32 paragraph (6).

Of course if the gift is a right to income then this exemption does not apply, but that is a very different argument.