Financing Plan B

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

scaramanga replied

25 July 2008, 13:00
Originally posted by VectraMan View Post

Doing it personally will be less hassle. Maybe you can take the cash as a loan from yourco and not pay any tax as long as you paid it back within the company year?

Cheers, I think I might go down that route for simplicity. I also think it would result in a lower overall tax bill should the venture ever be sold.
Leave a comment:
VectraMan replied

25 July 2008, 09:43
Where will you stand if it takes off and you want to shut down your plan A Ltd?

Doing it personally will be less hassle. Maybe you can take the cash as a loan from yourco and not pay any tax as long as you paid it back within the company year?
Leave a comment:
scaramanga started a topic Financing Plan B

25 July 2008, 09:37
Financing Plan B

I'm looking to set up a plan B with some former colleagues. We plan to set up a LTD for the venture and each put in a few thousand to get it off the ground.

Does the panel have any thoughts on whether it makes more sense for my to be a shareholder in this new entity directly, or to hold the shares through my limited?

I'm thinking the benefit of doing it through my LTD is that I won't have to pay any personal tax on the startup money, but I'm curious as to whether taking this hit in the short term may be better in the long term if the idea started to make some decent money. e.g. if the company started paying dividends or got taken over.

I'm going to get my accountant's input as well, but wondered if anyone on here had done anything similar. If it was a sole venture I would just do it through my ltd, but the fact other people are involved means a separate company needs to be formed.
Tags: None