Reply to: Initial shareholding capital - how to account for?

Re: Re:Shares

Oh dear, started out by saying the printer could simply scan the original document and they would reprint from that.

Spot the stupid mistake. Yep, they would be in .... no, not English .... but Russian. Do the translations yourself, scan the original photos and all you need is the setting and printing. Not cheap but not as expensive as might be thought.

Re: Re:Shares

Rhino is as tight as a duck's @rse so if he doesn't do his own accounts it's because it's not worth the hassle.

Its okay guys I am not going to deprive you from your fair commission

What types of books at you considering or shouldn't I ask.

Its called "How to score......... over 10k posts on a public BBS without getting banned!"

Well, seriously its not my book, but my sisters - she did publish a few back home on subject that should be fairly easily moved over, at least on trial basis --- embroidery or whatever its spelled -- lots of pictures of how to do nice stuff with needle and some threads. Niche market, but her designs are original so we thought to give it a shot. :rolleyes

Re: Re:Shares

AtW, I have recently typeset my father-in-law's book and am preparing the pdfs for the printers/binders as I type this.

What types of books at you considering or shouldn't I ask.

Re: Re:Shares

Couple of things to add...

Rhino is as tight as a duck's @rse so if he doesn't do his own accounts it's because it's not worth the hassle.

Second point as he has been very generous with our commission he is very confident that you will be satisfied (as am I)

Third point (ok over the couple - so sue me) if he wants to be generous with anybody else it's his half only

Re: Re:Shares

thanks Rhino,

I've got the form and I am seriously tempted to go for an accountant now, but I am going to get involved in some book distribution, and it might be a lot cheaper to print them in Russia and import here, and I am not sure how would accountants like that :rolleyes

Re: Re:Shares

AtW - I know Fiddle and I tend to get involved in some dodgy threads but the accountancy advice is good. If you sign up with the accountant we will refund our referral fee to you. That will be £50 less any tax we have to pay, as fees go through our respective limited companies
You can then tell the forum what you think of them - bit of a shame you wouldn't be able to compare them to the expensive and incompetent accountants most of us have had to endure in the past.

Anyway best of luck.

Rhino

Re: Re:Shares

We just had somebody sign up who needed a company on the quick because he was starting a contract in a few days. He had no problems.

You are correct in assuming that an IT contractor accountant will not likely be impressed with somebody running a market stall type operation. All I did to make things easy for them when I got large batches of smallish payments for listing fees on KwikBreaks was to keep the trading invoices in-house and provide them with a summary invoice covering each batch of cheques paid into the company account (I kept that down to a couple a month by the simple expedient of hanging on to them for up to a couple of weeks).

Re: Re:Shares

thanks guys, particularly xoggoth and OrangeHopper - much appreciated

> My advice was to hold fire on setting up the company and get an
> accountant (who would set it up for free) when there is a product.

fiddly, I had to act fast since I got a contract at DimPrawn busting rate and I thought that costs of getting company earlier will be more than outweighted by tax savings that I will achieve by keeping gross earnings in company and paying them in the next tax year or just using it for legit investment -- hence the reason why I had to open company earlier than I thought.

I suppose you could fund the company by paying wads for your share but it more usual to just lend it money.

right, that sounds good, are there typical legal agreements that I can use, or would a simple piece of paper with essential information about me lending money (say under 0%) to the company do?

Or should I just do what OrangeHopper says -- write personal cheque and deposit into company account?

Are you proposing to run a limited company without an accountant ?

At this stage (or very short temporary contract and period of zero revenues for a few months) I thought that accountant would have been unjustifiable cost. From what I understand so long as I keep accurate bookkeeping in Microsoft Excel format, then I can always come to accountant and ask to take over the whole lot at the end of the year - now I realise it will cost me as much as paying every month to do it, but its a backup option with the same cost I would have incurred anyway, so why not see if I can do it on my own? FYI I am signing up to local accounting and book keeping course courtesy of New Labour skill centers or whatever they called.

I'd stongly advise AtW to sign up through us

Well, to be honest I was seriously tempted to do that

I was put off by the lack of information about accountant in the first place, and the fact that it took way too long to register company (7 days my arse!). I suppose I could always come back begging for your great accountant to take me on?

One problem is that my business will soon start real trading -- I am going to pimp my sister's books and I am not sure whether £50 monthly fee would cover transactions typical to real business (many) rather than contractor firm (weekly invoices at best).

Anyway, I am very grateful to xoggoth for doing 2 things that many of your chickens won't do:

1) he develops his own software and sells it thus being real business

2) he manages accounts on his own, clearly because it would have been overkill for him

Re: Re:Shares

Well I, as the other half of ************, enjoyed your advice xoggoth.

As I would like to keep my relationship with my accountant sweet and don't wish to prejudice future referrals I'd stongly advise AtW to sign up through us - knowing full well that such a recommendation will ensure he goes elsewhere

Re: Re:Shares

Xogg - if you are suggesting that AtW does his own accounts without an accountant then I hereby declare you sworn in as his personal mentor in this matter.

You will natuarally be expected to answer all manner of enquiries at random times in the early morning as AtW appears to be a nocturnal beast

Are we agreed then ?

Re: Re:Shares

AtW don't listen to Rhino. You need an accountant like Blackpool tower needs cosmic rays.

On the other hand, a Feng Shui consultant is worth his weight in gold in these matters, get the balance of profits to issued share capital wrong and you could set up negative vibes that will completely wreck your business.

Also, a decent Obeahman (you may need to go to London for this, Birmingham Asians have a poor reputation as Ju Ju practitioners) will protect you from your enemies and cast out de debils from your CT61(Z).

Re: Re:Shares

As Xog says, just loan some monies to the company and show it as owing to you.

Need a printer to print out invoices. Make a personal check out to company and deposit in company account. Add said amount to 'AtW' ledger/account/tally thereby flagging it as owed to you.

Another example. If you pay mileage expenses you don't have to write a check out to yourself each time. You can add the amount to your 'AtW' ledger and pay yourself a lump some when cash flow permits.

Has nothing to do with dividends. Just like a loan from the bank.

Re: Re:Shares

AtW

Are you proposing to run a limited company without an accountant ?

Re: Re:Shares

Co has to have some share capital, usually some nominal figure like £100 and It has to issue some, again nominal, usually £1 each to directors or anyone else you will want to pay divis to.

It isn't real money, just meaningless legal bollux. Apart from showing it in accounts and filling in some poxy forms to cos house and IR no real relevance to anything.

I suppose you could fund the company by paying wads for your share but it more usual to just lend it money. That way if you are not earning anything you can charge interest on it. Just keep records of your loan so IR don't think its income. Best to draw up short agreement on any repayment interest.

Re: Re:Shares

It's pointless offering the Russian any advice - he always knows best.

My advice was to hold fire on setting up the company and get an accountant (who would set it up for free) when there is a product. I also advised he keep the day job too and use the time he wastes on here for something constructive.

What is going to happen is he'll build up a mish-mash of bits of paper and spreadsheets (probably in some friggin linux specific format that no commercial outfit will be able to read). He'll be pestered by the IR to set up a payroll. Come year end he'll have a pile of crap that will probably cost more to convert into accounts than if he'd had an accountant from the start. Naturally even more time will be wasted asking dickwad questions on here and scouring the web for stuff which he really shouldn't need to be bothering with or which would be answered immediately by a quick call to the accountant.

A pig headed idiot if ever there was one.