Joint venture with another contractor

[Limited]

I'm in the early stages of planning to set up a company with a fellow contractor. We have similar and complimentary skills and a plenty of customers between us. We are just working out the best way of setting everything up. The idea is to create a new company and initially subcontract work to our own companies and gradually moving customers over to the new one and closing MyCo and HisCo. Anyone done anything similar? I have a few questions - can anyone help?
- Where would be a good place to go for more info? Accountant? Do the usual suspects on here cater for set ups like this or just one-man bands? I have no intention of using my current accountant.
- Would we each have to take salary from both companies?
- Is there a problem in using MyCo's equipment, phone etc to work for OurCo?
- Any IR35 implications in persuading clients to renew with OurCo? (assuming all outside IR35 at the moment).
- Any specific issues we need to consider in Shareholder's agreement?

thanks

[Sockpuppet]

Don't do it.

- Won't save you in an IR35 investigate
- Will be a complete ball ache to take dividends "fairly"
- You will fall out and seperate back to other cos

[moorfield]

Don't do it.

- Won't save you in an IR35 investigate
- Will be a complete ball ache to take dividends "fairly"
- You will fall out and seperate back to other cos

Cynical. But a highly likely outcome.

[Fred Bloggs]

Be careful with MSC legislation if you share out divis etc against different classes of share. I agree, it's likely to end in tears.

[Limited]

Thanks for the advice.

It's not being done for any IR35 reason as we are both as happy as you can be that we are not IR35 caught.

We both already subcontract work to each other to cover holidays etc but see this as a next step to getting bigger projects, more interesting work, better reputation, creating resellable products etc

I'm prepared to take a few risks now having done this for a few years.

That's the Why. Need some help with the How.

Thanks

[rootsnall]

Ring the usual suspects and ask them. I'd of thought some sort of mix of Class A and B shares would be the go but I aint an accountant.

[chicane]

You will fall out and seperate back to other cos

Been there, done that.
Limited, do you have a good reason for merging your business with that of another contractor?

[Moscow Mule]

We both already subcontract work to each other to cover holidays etc but see this as a next step to getting bigger projects, more interesting work, better reputation, creating resellable products etc

Been there, done that.
Limited, do you have a good reason for merging your business with that of another contractor?

Is that not good enough?

[THEPUMA]

Yes we've got clients who've done similar ventures. Feel free to call me to discuss (01923 809414).