Brother as sole director of ltd

[malvolio]

If you are seen to be running the company anyway through a sham arrangement with your brother, it's not going to make much difference to hiding your money from the wife.

Like I said - look it up...

[Mordac]

Hi.

I'm now to these forums and contracting in general, so maybe a stupid question coming up as I've got a lot to learn...

I'm currently a perm, but I'm interested in going contracting. Are there any issues with setting a ltd company with my brother as the director and owner, and me as an employee? We are very close and I'm confident there would be no issues between us, but wondered if anyone had any experience or advice on this?

The reason for this is I'm in a difficult marriage, divorce is a possibility in the next couple of years and whilst I will always support my kids, my wife would try to take me to the cleaners for everything I've got - so looking for ways to protect myself and preserve the right to some kind of modest life after splitting up!

Thanks

The divorce lawyer will have you for breakfast, and HMRC will have what's left for lunch. In short, you're toast, and now I've run out of food related metaphors.

[washed up contractor]

Hi.

I'm now to these forums and contracting in general, so maybe a stupid question coming up as I've got a lot to learn...

I'm currently a perm, but I'm interested in going contracting. Are there any issues with setting a ltd company with my brother as the director and owner, and me as an employee? We are very close and I'm confident there would be no issues between us, but wondered if anyone had any experience or advice on this?

The reason for this is I'm in a difficult marriage, divorce is a possibility in the next couple of years and whilst I will always support my kids, my wife would try to take me to the cleaners for everything I've got - so looking for ways to protect myself and preserve the right to some kind of modest life after splitting up!

Thanks

Oh this is going to end well. Cant wait for the next posting in the series 'I made my brother the director and owner of 'my' limited company and now he's run off with all the money and will not return my calls!'

[SueEllen]

Oh this is going to end well. Cant wait for the next posting in the series 'I made my brother the director and owner of 'my' limited company and now he's run off with all the money and will not return my calls!'

More likely the brother's wife find's out and goes after the money.

[Paddy]

The obvious things to be careful about

1 What happens if your brother dies in a car crash one day, who inherits the money in the company? tax implication for any such inheritance?
2 Your brother gets married/divorced or unexpected child turns up with a mother demanding maintenance... what happens to the money?
3 Your brother gets arrested for some serious crime?
4 Somebody sues your brother for something, and the court ends up taking account of all his assets including this company?

These are reasons people dont bother with this approach

Shareholders own the company, not directors (unless they are also shareholders)
Brother would need to someone to have POA (power of attorney) in case he becomes incapacitated or dies.
Articles could be drawn up to suit arrangement. Profits could be held in a trust fund.
Shares could be held by a shell company.