Setup company with different share classes?

[mikeguk]

Ok, have done some reading. To confirm the facts, both my wife & I will be contracting through the company, but we want to be able to pay dividends out to each other based on how much we actually earn (our eanings are different). Therefore I would need to be able to pay dividends to myself for one amount, and dividends to my wife for another amount. Is it just as simple as setting up another type of share?

Cheers
M

[xoggoth]

You can declare any sort of share you like. Just get the form from Co Hse.

[mikeguk]

Thanks

Great, thanx for the info. Will go away and do some reading

[XLMonkey]

Mike,

question is just too big and complicated for a discussion board. Suggestion you go to www.PCG.org.uk and download
- first, the guide to freelancing, which will go through the incorporation process and what share structures most contractors use
- second, the guide to S660A (the settlements legislation). This covers (among other things) issues about different classes of shares and their potential tax implications.

then, when you've read those through, come back with a more specific question.

[mikeguk]

Hi

Has anyone got some help on how to set up a LC with different share classes, so that dividends can be paid to one share class and not the other, and vice versa. Is this as simple as adding Preference shares to a 2nd party? But then does that give you flexibility to pay dividends to the 1st party who say holds the ordinary shares?

In Australia they use 'A Class' and 'B Class' shares to achieve the above result. Does such a similar feature exist here?

Finally, if the second Share class is added after incorporation, does it matter if there are retained earnings in the company at time of adding a new share class?

Any help in this area would be much appreciated for a newbie?

Thanks
M