Reply to: Ltd Co formation online, who to use and number of Shares to issue ??

[lnoton]

I agree with Sockpuppet, although I am not that cynical about women.

Always, always, always keep finances separate. It is just one more thing that can go wrong if you don't.

Back when I was a permie and owed thousands on credit cards, the girlfriend of the time had just received a substantial inheritance and offered to lend me the money to pay off the cards. I had to explain to her why this was a seriously bad idea. I would not have been able to pay her back for a long time after we split up.

Well there is no lending of money to anyone, and we're no doubt going to get engaged soon...so then it doesn't matter either way if she has a share or not. She'll get half if we break.

Anyway I'm not asking for advice re: having partner as a Director (she can earn well over 50k herself as a permie and has plenty of money...she has little interest in taking anything from me. In fact she is better off at the mo.) Im more interested in s660.

[Gonzo]

I agree with Sockpuppet, although I am not that cynical about women.

Always, always, always keep finances separate. It is just one more thing that can go wrong if you don't.

Back when I was a permie and owed thousands on credit cards, the girlfriend of the time had just received a substantial inheritance and offered to lend me the money to pay off the cards. I had to explain to her why this was a seriously bad idea. I would not have been able to pay her back for a long time after we split up.

[lnoton]

We are both IT people that work building J2EE apps and the like. So we thought (with advice from other contractors) that setting up a company together would be suitable. As it is a strong case of showing capable substitution etc. However as I said my g/f will not start contracting until summertime. Seems a little crazy for us to both resign and contract at the same time. Either way I have now set up the company with us both as Directors and we have 1 share each and my g/f is the Com Sec.

Lets put the "dont trust women etc" aside, is there an issue with her taking money in the forms of dividends if she hasnt worked for the company? Its not as if its a tax incentive for us is it - as she already has a permie job in the higher tax bracket, therefore the dividends will be tax at the higher rate anyway.

My concern here is s660, any advise would be ideal. Yes she would happily give me my share back and resign as Director, I havnt started a contract yet so there is no money in the account. But it seemed sensible in a way to minimize paperwork etc.

[VectraMan]

So in short. Women are evil get that share back before she kills your humanity and destroys your sole.

soul

Unless you're saying that he keeps fish?

I agree FWIW. However you don't have to keep using the same Ltd. if it all goes tits up - you can always start a new one. Better to have a company each in the first place though.

[Sockpuppet]

Yes. You pay a dividend per share. So she will also have to get the same.

Hint of advice from sockpuppet:

While its all rosy now and you think you love each other she will at some point rip your heart out and tulip in the cavity that is left. She doesn't love you...not nearly enough. Be married for 20 years and I might think that its a good idea but it IS NEVER, NEVER, NEVER a good idea to have girlfriend as a shareholders.

Giving shares to someone who you think you are going to spend the rest of your life with is a seriously bad idea.

Business and personal lives do not mix period. While it may seem like a cool money saving idea to work through the same company its not. Keep your affairs separate so if you do break up its easier and you are not left holding parts of each others company.

Plus it makes it easier unless you bring in different amounts of money and you don't have to pay large sums of PAYE to one person etc to even out the dividends.

So in short. Women are evil get that share back before she kills your humanity and destroys your sole.

[lnoton]

Hi all, something along a similar line.

I have recently set up my business with myself as a Director and my girlfriend as a Director also, as well as being the Secretary.

I am about to start contracting and Rachel (my girlfriend/other Director and Secretary) will start at some point in the next 6 months. We both work in IT.

Using eacbs I gave 1 share to myself and 1 share to her, leaving 998 left.

What does this mean when I come to pay dividends out? As she will not actually be working for the company (not yet anyway), other than doing some paperwork.

Will she also have to receive a dividend payout inline with what I get? I fear this might be breaking rules.

Any help would be much appreciated...i'll be lining up an account after the holidays but any info now would be much appreciated.

Cheers

[DaveB]

Co sec alone will not qualify for the shares. He/She also have to be a Director to qualify for share allotment. At least that is what I thought.

Not true, anyone can be a share holder in a company and there are no restrictions on who "qualifies" to own them. To obtain shares all that needs to happen is either :

A) Existing shareholder gives them to you as a gift.

B) You buy the shares from an existing share holder.

C) You buy the shares directly from the Co. at first issue - Usually when the Co starts up.

[Lewis]

There was a lot of talk about gifting shares to your wife once the company is setup.

The question is how do you go about 'gifting shares'?

P.S. I used the link from contractor uk to set up my company, which gives you an off-the-shelf company (e.g. original directors resigned once myself I myself were appointed as directors)

I've done a little digging on this. I found this page on the HMRC site http://www.hmrc.gov.uk/so/faqs.htm#2.

Plus I also found this on the companies house web site "To transfer shares in a private or unlimited company, a seller must complete and sign the appropriate section of a 'stock transfer form' - available from law stationers - and pass it, together with the share certificate, to the new owner. The new owner must then complete their section of the stock transfer form, pay any stamp duty to the Inland Revenue and pass the completed form and share certificate to the company. The company secretary then arranges for the directors to authorise the change to the members' register and issues a share certificate in the new name. "(http://www.companieshouse.gov.uk/abo...ml/gba6.shtml).

HMRC say you need to purchase a stock transfer form but I found a few copies online e.g. http://www.london.edu/assets/documen...nsfer_Form.pdf.

I'm not sure about the category L part though. It all sounds a bit complicated so I reckon getting an accountant to do it might be a good idea. Also not sure if you need to pay stamp duty on a small number £1 shares. But hopefully this gives you some idea of how it works.

[PAG]

Yes, it would have been easier... but although my wife is comp secretary, I did not have the option to set here up as a share holder at the time!

Co sec alone will not qualify for the shares. He/She also have to be a Director to qualify for share allotment. At least that is what I thought.

[gmurchison]

ta very much chuck!

[Bluebird]

Yes, it would have been easier... but although my wife is comp secretary, I did not have the option to set here up as a share holder at the time!

ok then sell or transfer her the shares.
form from companies house.

[gmurchison]

Yes, it would have been easier... but although my wife is comp secretary, I did not have the option to set here up as a share holder at the time!

[Bluebird]

There was a lot of talk about gifting shares to your wife once the company is setup.

The question is how do you go about 'gifting shares'?

P.S. I used the link from contractor uk to set up my company, which gives you an off-the-shelf company (e.g. original directors resigned once myself I myself were appointed as directors)

isn't it just easier to make your wift Co Sec & give her equal shares when the company is ste up ?

My wife and I each got a £1 share in the co which we paid for...

[gmurchison]

There was a lot of talk about gifting shares to your wife once the company is setup.

The question is how do you go about 'gifting shares'?

P.S. I used the link from contractor uk to set up my company, which gives you an off-the-shelf company (e.g. original directors resigned once myself I myself were appointed as directors)

[mark09]

who did you eventually use then?