DuaneJackson
9th November 2005, 12:34
Presently I own 50% of a limited company. It's doing quite well. We have a product that is totally seperate from the core business but owned by the same limited company.
I'm coming to an arrangement with my partner that will mean I own 100% of the limited company and we set up a new company for the seperate product and he will own 10% of that new company.
The existing company will also sell him some minor things like his laptop, PC, etc for a nominal fee.
This throws up a few qustions. Firstly, should I hold my 90% of the new company as an individual or as the existing limited company. I think the latter might have some tax benefits(?) but owning it personally will give me more flexibility further down the line when it comes to selling it or a part of the first company.
Then there is the issue of a shareholders agreement for the new company. Would I need one to protect myself if I have 90% of it?
I assume I can sell the product from existing company to new compnay for a nominal amount? Would some sort of contract need to be done for this? The new company will have no capital either. So to pay the bills I am thinking about loaning money from the existing company to the new company. Is this wise?
I will ofcourse be taking professional advice and asking my accountants opinion but I thought I'd also ask here as I respect the opinions of a lot of people here and you may well spot something I haven't.
Thanks.
I'm coming to an arrangement with my partner that will mean I own 100% of the limited company and we set up a new company for the seperate product and he will own 10% of that new company.
The existing company will also sell him some minor things like his laptop, PC, etc for a nominal fee.
This throws up a few qustions. Firstly, should I hold my 90% of the new company as an individual or as the existing limited company. I think the latter might have some tax benefits(?) but owning it personally will give me more flexibility further down the line when it comes to selling it or a part of the first company.
Then there is the issue of a shareholders agreement for the new company. Would I need one to protect myself if I have 90% of it?
I assume I can sell the product from existing company to new compnay for a nominal amount? Would some sort of contract need to be done for this? The new company will have no capital either. So to pay the bills I am thinking about loaning money from the existing company to the new company. Is this wise?
I will ofcourse be taking professional advice and asking my accountants opinion but I thought I'd also ask here as I respect the opinions of a lot of people here and you may well spot something I haven't.
Thanks.