Business ownership

[Michelle7897]

I’m needing advice. I’m setting up a new business, my husband is taking the new business loan in his name. Would that mean he owns that business? Do I need to get legal documentation to confirm it’s my business?

 

[JEREMY HAWKE]

I think you should get professional guidance and advice if your this unsure

 

[The Byre]

So you are worried about him being the sole owner today??? And you've only just started???

My wife does all the financial planning, inc. control and I strongly suspect has something to do with the steady supply of trousers so that I am vaguely decent. She stands between bookkeeping on the one side and two teams of accountants in two different countries on the other - keeping a sharp eye on everything!

I am strictly blue-sky thinking, forward planning, project management and I am responsible for coming up with bonkers ideas that do not stand a cat-in-hell's chance of success. I also do the cooking at home.

I am the brains behind the whole operation - unless of course, it is something intellectually challenging, in which case, she has to do it.

We trust one another totally. Life's too short to be fretting over daft stuff like "Can I trust my partner?"

 

[Ian J]

I’m setting up a new business, my husband is taking the new business loan in his name. Would that mean he owns that business?

No as a personal loan in his name is nothing whatsoever to do with your business

Do I need to get legal documentation to confirm it’s my business?

No as if it's a limited company you will file shareholdings at Companies House which will show who owns it

 

[Mark T Jones]

If its a limited company then ownership is established by shares

If its a partnership, then ownership is typically equal unless otherwise stated

What you definitely need however, is a properly drawn up shareholder/ partner agreement

 

[Opinion87]

Posts like these worry the hell out of me. Do people just wake up on a Monday and decide to start a business without actually understanding what they're doing?

 

[The Byre]

Apparently, yes they do! That's why so many start-ups fail!

 

[Mr D]

Posts like these worry the hell out of me. Do people just wake up on a Monday and decide to start a business without actually understanding what they're doing?

Yes.
Come to think of it, probably how I started every business I started.
Sink or swim is a wonderful motivator to learn to swim!

 

[LanceUk]

I’m needing advice. I’m setting up a new business, my husband is taking the new business loan in his name. Would that mean he owns that business? Do I need to get legal documentation to confirm it’s my business?

See above for the answers, but so what if it the business is goingt to be owned by him? It sounds like you don't have the capital or the risk profile to take the loan, so without the money, your business is just a pipedream, or you have to go to some other investor/shark to get it off the ground.. and they will provide the legal documentation to protect their interest.

If the business fails or takes longer to get going then you plan (and from your quetion one of these will happen), he carries the financial can.. In other words, he is taking the risk. Why shouldn't he have a stake in the business unless you are paying hiom a decent interest rate or some other fee for providing you finance (the fact he has to borrow it is immaterial).

Personally, if my partner were askign this question, I would be drawing up the legal documentation already.

 

[Ian J]

See above for the answers, but so what if it the business is going to be owned by him?

Michelle didn't ask for opinions on her business structure

 

[John Hemming]

One of the hardest things about this sort of situation is that you have people who are married setting up a business. That can work very well, but if the married people get divorced then the business is another thing to fight over. Hence it is in both partners' interests to make sure that the deal is put in writing and is very clear.

 

[Mr D]

One of the hardest things about this sort of situation is that you have people who are married setting up a business. That can work very well, but if the married people get divorced then the business is another thing to fight over. Hence it is in both partners' interests to make sure that the deal is put in writing and is very clear.

True.

Have come across people getting divorced where the allegations fly thick and fast. And the business that was worth £250k ends up being worth peanuts as its damaged in the process by those unwilling to let their ex benefit.

Least with an agreement in place now while people are still talking there's a common basis to work on or point to.

 

[John Hemming]

Least with an agreement in place now while people are still talking there's a common basis to work on or point to.

That is right. It is sad to do things this way, but people do need to look what happens in the situation of divorce. Often the emotional drive of one or both partners is to harm their ex partner which in the long term is not a good thing. It is much worse when there are children around.

Hence the more that is previously agreed the better. The assets of the business would always be the marital acquest anyway.

 

[MarkOnline]

Yes.
Come to think of it, probably how I started every business I started.
Sink or swim is a wonderful motivator to learn to swim!

One time I would have agreed with you but experience has told me you need some basic knowledge. Hungry and smart is much better than Hungry and stupid and the amount of information available today means noone who is serious about being self employed or starting a business, cant educated themselves with the basics.

 

[MarkOnline]

Maybe Pish Pash can offer the best advice here.

I think some posters have been a bit hard on the OP. She doesnt know so is asking for advice, whats the forum for? Id rather a post like this than the bu*****rs asking how to invest 20 squillion in a new company using an offshore shell company and they havent got a solicitor.

Good luck OP with your new venture. Read as much as you can.

 

[LanceUk]

Michelle didn't ask for opinions on her business structure

I don't believe I offered advice on her business structure....

 

[Mr D]

One time I would have agreed with you but experience has told me you need some basic knowledge. Hungry and smart is much better than Hungry and stupid and the amount of information available today means noone who is serious about being self employed or starting a business, cant educated themselves with the basics.

Yes, basic knowledge helps considerably.
Mistakes will have been made - quite possibly still being made years later - because we do not know what we do not know.
However all the knowledge from other people in the world generates no profit - at some point we have to learn by experience.
And there are times that experience provides different answers than what people often tell others.

For instance hundreds of times have seen people tell others to compete on price.
Did that at one point myself many years ago when doing virtual trading. Probably cost me several grand following what others suggested.
Now I charge what I choose and ignore the fact some are half my price. Sure, they sell more.
I merely work a lot less for the same profit.

I can live with that.