Forming a LTD Company..

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J

JHPWEB

  • #1
    Hi there,

    I am forming a LTD company and have been asked how many shares I should issue and how much I should value each share?

    Totally unsure on what would be the best amount?

    I am running this business by myself.

    Any help would be hugely appreciated.
     
    K

    KM-Tiger

    Free Member
    Aug 10, 2003
    10,344
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    Bexley, Kent
  • #2
    JHPWEB said:
    Hi there,

    I am forming a LTD company and have been asked how many shares I should issue and how much I should value each share?

    Totally unsure on what would be the best amount?

    I am running this business by myself.

    Any help would be hugely appreciated.
    Click to expand...

    What you will find with a Ltd is that is the first of many questions that you will not know the answer to.

    It's important to realise what you are getting into, and you might care to read the information on this site run by a member here.

    That will answer some questions, but beyond that, sort out an accountant who can advise better than you will ever get here, as your personal circumstances and the exact nature of your business are big factors in how to structure a Ltd.

    Resist the temptation to muddle through on your own - chances are good it'll bite you later on if you do.
     
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    J

    JHPWEB

  • #3
    KM-Tiger said:
    What you will find with a Ltd is that is the first of many questions that you will not know the answer to.

    It's important to realise what you are getting into, and you might care to read the information on this site run by a member here.

    That will answer some questions, but beyond that, sort out an accountant who can advise better than you will ever get here, as your personal circumstances and the exact nature of your business are big factors in how to structure a Ltd.

    Resist the temptation to muddle through on your own - chances are good it'll bite you later on if you do.
    Click to expand...

    What a great website! Many thanks :)
     
    Upvote 0
    W

    Williams lester

  • #4
    Yes, definitely get yourself an accountant...as there are quite a few things that need doing for a limited company, and unless you know what they are...you are likely to miss filing deadlines for them.
     
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    Ozzy

    Ozzy

    Founder of UKBF
    UKBF Staff
    • Feb 9, 2003
    8,393
    11
    3,535
    Northampton, UK
    bdgroup.co.uk
  • #6
    EmployEasily HR Services said:
    As you are the sole shareholder you could allocate yourself one share at a value of £1.00
    Click to expand...
    This is correct as far as the formation is concerned, if you are the only person owning the company and will be working by yourself this is perfectly fine for you.
    If you have any other questions either speak to an accountant as mentioned above, or alternative my company handles company formations and either myself or my colleagues will be happy to help.
     
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    Y

    YFXinnovations

  • #8
    Company formations are a tricky business. Yout can own and allocate shares at the nominal fee of £1. Most company formation agents can do this for you but if you want to do it youself try capitaldownloads.com. Reasonable price plus you can edit it accordind to your needs.
     
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    C

    Craig HelpTrainingCourses

  • #9
    Hello,

    My advice would be to allocate 1000 shares rather than 100. This makes things easier in the future if for example you gave away 7.5% of your business in return for an investment - If the company has 1000 shares you can allocate 75 shares. With a company that has 100 shares you can't do this.

    Get some good advice from an accountant ( you will get a free chat with most accountants)

    Hope this helps a little

    Craig
     
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    D

    David Griffiths

    Free Member
    • Jun 21, 2008
    11,553
    3,669
    Cwmbran
  • #10
    Craig HelpTrainingCourses said:
    Hello,

    My advice would be to allocate 1000 shares rather than 100. This makes things easier in the future if for example you gave away 7.5% of your business in return for an investment - If the company has 1000 shares you can allocate 75 shares. With a company that has 100 shares you can't do this.

    Get some good advice from an accountant ( you will get a free chat with most accountants)

    Hope this helps a little

    Craig
    Click to expand...

    But if you change the share structure in future you can change the share allocations to suit. Why issue 1000 shares now when you may never need to invest that money? Wait until you need to change things, then do it.
     
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