Joint venture or LTD? Best way to work together

[dan.ferguson]

Hi guys,

I work with new startups helping them out to bring their new products out to the market using my sales skills and contacts.

However, my work is not just selling but it is strategic as well (e.g. product development, revenue streams strategy, marketing, etc). Therefore my clients bring in their assets and are willing to share the equity with me.

What do you think is the best and most economically effective way to go ahead? Creating joint ventures on top of my and my clients companies or starting-up a completely new limited company every time?

Thanks for your help as usual.
F

 

[elaine@cheapaccounting]

From a tax planning point of view - not enough info here

Separate limited co - think of CT issues with that approach.

Need to think of any vat reg issues

What is the likely stake in each limited co. For how long? What is your exit strategy?

So many things need to be looked at most of which would not be shared in a forum I should have thought.

Session with your tax advisor maybe?

 

[dan.ferguson]

Thanks for the reply Elaine,

What about a simple Business Partnership Agreement? Don't you think it could be a way to test the water before getting involved in something bigger?

 

[elaine@cheapaccounting]

Is this the first of them?

Then yes - get a JV agreement drawn up.

I assume the key to the success of your involvement is how you exit and get a pay out?

 

[dan.ferguson]

Is this the first of them?

Then yes - get a JV agreement drawn up.

I assume the key to the success of your involvement is how you exit and get a pay out?

Elaine I sent you a PM

 

[Ozzy]

Hi Dan,
I've got a few JV's running, so if this is of help I'll describe my structure.

I own a holding company which I am employed by.
For each JV agreement we have a contract in place and set up a new Ltd Co for each venture, my stake is owned by the holding company and their stake is owned by their company (or individual).

This works for me because I want my earnings from the venture to go into my holding company, not looking to retire yet.

There are also good tax benefits in using an LLP instead of a Ltd Co, but that is tax territory and not my bag. See you are chatting to Elaine off forum so will leave that to her, just though would give example of my experience in it.

 

[dan.ferguson]

Thanks Richard