Good Morning all,
Sorry if this has been askd before, but I have searched and could not find it anywhere (but did find some good stuff that distracted me for half a day!)
I am about to press the button to form a ltd company and need to understand / have advice about starting capital / share premium / startup costs.
If I issue 2 £1 ordinary shares for £1 each, my company will have £2 share capital and £2 in the bank (Wow). So I now want to reclaim the business expense of setting up the company (about £75+vat for an off the shelf one) and also things line the web site costs incurred for the next 2 years (about $80).
This means that the company is already about £120 down on day one (before I have even set up the business bank account!).
OR do I set up the company and issue the 2 £1 shares at a premium of say £99 so I get £200 in the bank, meaning I can straight away recover the startup costs?
OR do I wait to claim the expenses until the income starts to roll in? ( I could always book it as accrued expense before submitting it as an actual cash out of the door expense)? (and do I then out in £2 or £200?)
Cheers
Jon
Sorry if this has been askd before, but I have searched and could not find it anywhere (but did find some good stuff that distracted me for half a day!)
I am about to press the button to form a ltd company and need to understand / have advice about starting capital / share premium / startup costs.
If I issue 2 £1 ordinary shares for £1 each, my company will have £2 share capital and £2 in the bank (Wow). So I now want to reclaim the business expense of setting up the company (about £75+vat for an off the shelf one) and also things line the web site costs incurred for the next 2 years (about $80).
This means that the company is already about £120 down on day one (before I have even set up the business bank account!).
OR do I set up the company and issue the 2 £1 shares at a premium of say £99 so I get £200 in the bank, meaning I can straight away recover the startup costs?
OR do I wait to claim the expenses until the income starts to roll in? ( I could always book it as accrued expense before submitting it as an actual cash out of the door expense)? (and do I then out in £2 or £200?)
Cheers
Jon
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