Originally posted by 7656
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1. Depends on how you intend to split profits. With an Ltd owned by both companies, you are more or less forced to distribute profits according to shareholding, and 50/50% shareholding is never a good idea. You could alternatively agree to invoice the joint Ltd for your efforts and then split the profits according to shareholding. There should ideally be a third, independent party that owns 2% so as to avoid a deadlock. An LLP with each company (not directors) as members provides the greatest flexibility, but you need a good agreement as to how profits should be split.
2. Doesn't matter if your companies are shareholders or partners. An Ltd doesn't pay taxes on dividends received from a UK company or (most) foreign companies. An LLP doesn't pay taxes, so it would be your Ltd's that would end up paying corporation taxes on revenue received before paying you dividends.
3. For this, you would need separate share classes and a good shareholder agreement if you go for an Ltd. If you instead go for an LLP you would need an equally good partnership agreement.
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