H E L P ME - Company Start up - assets

[Gritter]

Afternoon All,

I am in the process of setting up a winter gritting company. Things are not going as fast as I want them too at present in relation to funding as they proceed through the necessary channels (takes 4-6 weeks). The company will be set up as a limited company, but I am holding fire on actually setting the company up until approximately mid august. I wont actually start making money until November with the contracts I have in place. In the interim, I want to purchase some machines out of my own pocket. If I do this, can they be introduced into the company as assets, and once the company is set up and starts making a profit, can I with draw them out as cash? as they will be purchased out of my own funds?
I dont want to buy them, and they get absorbed by the company.

I can purchase machines alot cheaper now, as to what they will be in a month or two time. significantly cheaper.

I have my eye on 2 machines now, but at the price in which they are at - they will not be there for long.

If someone can shed some light I would be much appreciated.:redface:

Regards,

Dave

[Andrew @ PLA]

Hi Dave and welcome to the forums. I'd be interested to know how you have won gritting contracts (with local councils I presume), when you don't even have a company / machinery / staff, etc?

[Stretchy]

Hi Dave and welcome to the forums. I'd be interested to know how you have won gritting contracts (with local councils I presume), when you don't even have a company / machinery / staff, etc?


I would assume its smaller scale private stuff.

[elainec100@cheapaccounting]

Ok well I shall answer your questions - read here on pre trading costs:

http://www.cheapaccounting.co.uk/blog/?p=315

[kontracta_com]

In short you can.

You buy them then you introduce them onto the company books by debiting the market price as an asset and crediting the same amount as a company loan. Your company then pays you (personally) the loan back.

[Gritter]

I have alot of business connections that require this service this winter. I have always worked for larger companies but have dealt with wining contracts, tailoring contracts, tendering for contracts. I have been given this opportunity to do something independently, so I thought I would give it a whirl. The gritting will be for large companies and council back-up - there is a method to my madness. Thank You for all your answers so far....