Who gets what shares???

**thunderlizard** · 26 June 2007, 08:40

Well you can transfer ownership at any time, so I'd suggest you start by having 100 shares (to give you some flexibility) and have them all yourself.

shares define who owns the company. If you wind the company up, or pay dividends out of its profits, the money goes proportionately to the shareholders.

**TheFaQQer** · 26 June 2007, 08:42

If you issue 1000 £1 shares, then you need to pay in £1000. If you only issue 1 £1 share, you only need to invest £1.

I have 1 share, wife has 0 - might reconsider after the Arctic result though...

**Ardesco** · 26 June 2007, 09:00

And are you sure you want to give your girlfreind shares??

If you do she is entitled to a dividend every time you pay out a dividend to yourself and you can't force her to sell her share holding. If you break up and she has equal shares it can be a real pain in the ass. If you pay yourself a dividend of £1000 you will have to pay her a dividend of £1000 as well.

IMHO do not give your girlfreind shares, if she is your wife fair enough if you divorce she can take you for half of everything anyway so there is not a huge amount of difference in risk, but giving your girlfriend something like that is a recipe for disaster IMHO

Of course I don't know what your relationship is like and it may be all good and you'lll stay together forever, but it's best not to bring finances and relationships together until you have to.

**TheFaQQer** · 26 June 2007, 09:22

Originally posted by Ardesco

And are you sure you want to give your girlfreind shares??

If you do she is entitled to a dividend every time you pay out a dividend to yourself and you can't force her to sell her share holding. If you break up and she has equal shares it can be a real pain in the ass. If you pay yourself a dividend of £1000 you will have to pay her a dividend of £1000 as well.

IMHO do not give your girlfreind shares, if she is your wife fair enough if you divorce she can take you for half of everything anyway so there is not a huge amount of difference in risk, but giving your girlfriend something like that is a recipe for disaster IMHO

Of course I don't know what your relationship is like and it may be all good and you'lll stay together forever, but it's best not to bring finances and relationships together until you have to.

If you did split up, you'd need to setup a new company and invoice from one to the other to get the cash out that way, surely?

Still more hassle than it's worth - tell her to get her own job!

**bash** · 26 June 2007, 13:25

Thanks guys for the responses. I think i'm going to take The Faggers advice and not give any shares to the girlfriend. She can be temperamental at times. You just never know!!!!!

I'm going to give 1 share to myself worth £1. Is this right, i don't know?????

Thanks guys.

**TheFaQQer** · 26 June 2007, 13:38

Originally posted by bash

Thanks guys for the responses. I think i'm going to take The Faggers advice and not give any shares to the girlfriend. She can be temperamental at times. You just never know!!!!!

I'm going to give 1 share to myself worth £1. Is this right, i don't know?????

Thanks guys.

That's what I did - some people might advocate having ten shares, or even a hundred. Makes very little difference - I have one share, and wouldn't bother with more than a hundred, as it's money you need to invest (for no real purpose).

**KathyWoolfe** · 26 June 2007, 13:40

Originally posted by bash

I'm going to give 1 share to myself worth £1. Is this right, i don't know?????

That's what I do...but then I haven't been contracting all that long, I suppose it all depends upon how much you can invest in your company!

Who gets what shares???