Considering starting 2nd Ltd Company.

[stormy3000]

Hey,

Firstly, wow! I haven't been here for nearly five years. I first joined the forum back in 2013 when I was setting up my own animation studio business. 11 years later, it's still successfully going... so err... thanks for all the help back then. Plus, I love that despite this, it still says I'm a 'regular poster'.

Background:
Alongside running the animation studio. Over the past year I setup a separate website focused around AI and animation, to try and stay ahead of the times. Which has done well, with over 4000+ free registered creatives, a popular related YouTube channel on the subject. Plus making some money through sponsorship on the site/channel.

Plus over the past 6 months, I've been steadily working away on some pretty cool AI tools that I think there's demand for. To offer a subscription service (SAAS) through the new and well-ranking website and start generating some revenue with all the potential that a startup might have.

I'd like to be able to apply for various UK business grants to help further the new business venture and really go all in. But as my company has been going for 13 years, I'm not eligible for lots of potential startup grants and potentially less attractive to Venture capitalists (if/when that time might come).

So I'm considering setting up a 2nd Ltd company just for the new AI animation related business.

Any advice on whether this approach is a good/bad idea would be welcome.

I think the benefits would be:

Having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either toward the animation studio, or the AI animation site in the future would be simpler if that situation ever arose. It should also open up more opportunities for grants.

Current thoughts:

- Small fee to setup the new Ltd business.
- (*Purely out of interest is setting it up as a US company possible/ beneficial.. just thinking where the best chance of future investment might lay).
- Are there extra tax implications I’m not aware of in running two businesses.

I assume there would be a need for:
- 2nd Business bank account.
- Separate business accounting via my accountants. (originally found via this site...
- Separate book keeping costs (via my book-keeper)
- Potentially separate liability insurances.
- Separate Xero costs.
- The Ai animation website domain was purchased, hosting paid for via my existing company. So would I need to correctly/legally pass the ai animation website to the new business as a business asset? ... Either selling it to the company for £1. Or some other solution. I’m hoping since I’m a 100% share holder of the current business and would be the same for a new business the process would be relatively straight forward.

So no huge costs related to doing it, but extra on going monthly expenses regardless of if it is ultimately successful or not.

But I'd like to make sure it’s correct just in case there are future investors interested in the venture.

Benefits.. having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either in current business or AIAnimation in the future would be simpler if that situation ever arose.

 

[RobPickering]

Hey,

Firstly, wow! I haven't been here for nearly five years. I first joined the forum back in 2013 when I was setting up my own animation studio business. 11 years later, it's still successfully going... so err... thanks for all the help back then. Plus, I love that despite this, it still says I'm a 'regular poster'.

Background:
Alongside running the animation studio. Over the past year I setup a separate website focused around AI and animation, to try and stay ahead of the times. Which has done well, with over 4000+ free registered creatives, a popular related YouTube channel on the subject. Plus making some money through sponsorship on the site/channel.

Plus over the past 6 months, I've been steadily working away on some pretty cool AI tools that I think there's demand for. To offer a subscription service (SAAS) through the new and well-ranking website and start generating some revenue with all the potential that a startup might have.

I'd like to be able to apply for various UK business grants to help further the new business venture and really go all in. But as my company has been going for 13 years, I'm not eligible for lots of potential startup grants and potentially less attractive to Venture capitalists (if/when that time might come).

So I'm considering setting up a 2nd Ltd company just for the new AI animation related business.

Any advice on whether this approach is a good/bad idea would be welcome.

I think the benefits would be:

Having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either toward the animation studio, or the AI animation site in the future would be simpler if that situation ever arose. It should also open up more opportunities for grants.

Current thoughts:

- Small fee to setup the new Ltd business.
- (*Purely out of interest is setting it up as a US company possible/ beneficial.. just thinking where the best chance of future investment might lay).
- Are there extra tax implications I’m not aware of in running two businesses.

I assume there would be a need for:
- 2nd Business bank account.
- Separate business accounting via my accountants. (originally found via this site...
- Separate book keeping costs (via my book-keeper)
- Potentially separate liability insurances.
- Separate Xero costs.
- The Ai animation website domain was purchased, hosting paid for via my existing company. So would I need to correctly/legally pass the ai animation website to the new business as a business asset? ... Either selling it to the company for £1. Or some other solution. I’m hoping since I’m a 100% share holder of the current business and would be the same for a new business the process would be relatively straight forward.

So no huge costs related to doing it, but extra on going monthly expenses regardless of if it is ultimately successful or not.

But I'd like to make sure it’s correct just in case there are future investors interested in the venture.

Benefits.. having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either in current business or AIAnimation in the future would be simpler if that situation ever arose.

I think you’ve covered most of the issues and benefits. Tax advice should come from a qualified accountant who knows your personal circumstances, generic advice really doesn’t cut it.

Strategically it really depends upon where you went to end up and steps along the way. From what you’ve said, a separate company may be best - IF you want to get investment and/or if you might want to sell the business in a few years. There are pros and cons. Happy to have a chat if you’d like to PM me, no charge and no sales pitch from me. Happy to discuss strategy, but you’d still need to run it by your accountant for tax advice.
Rob

 

[Lisa Thomas]

Hey,

Firstly, wow! I haven't been here for nearly five years. I first joined the forum back in 2013 when I was setting up my own animation studio business. 11 years later, it's still successfully going... so err... thanks for all the help back then. Plus, I love that despite this, it still says I'm a 'regular poster'.

Background:
Alongside running the animation studio. Over the past year I setup a separate website focused around AI and animation, to try and stay ahead of the times. Which has done well, with over 4000+ free registered creatives, a popular related YouTube channel on the subject. Plus making some money through sponsorship on the site/channel.

Plus over the past 6 months, I've been steadily working away on some pretty cool AI tools that I think there's demand for. To offer a subscription service (SAAS) through the new and well-ranking website and start generating some revenue with all the potential that a startup might have.

I'd like to be able to apply for various UK business grants to help further the new business venture and really go all in. But as my company has been going for 13 years, I'm not eligible for lots of potential startup grants and potentially less attractive to Venture capitalists (if/when that time might come).

So I'm considering setting up a 2nd Ltd company just for the new AI animation related business.

Any advice on whether this approach is a good/bad idea would be welcome.

I think the benefits would be:

Having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either toward the animation studio, or the AI animation site in the future would be simpler if that situation ever arose. It should also open up more opportunities for grants.

Current thoughts:

- Small fee to setup the new Ltd business.
- (*Purely out of interest is setting it up as a US company possible/ beneficial.. just thinking where the best chance of future investment might lay).
- Are there extra tax implications I’m not aware of in running two businesses.

I assume there would be a need for:
- 2nd Business bank account.
- Separate business accounting via my accountants. (originally found via this site...
- Separate book keeping costs (via my book-keeper)
- Potentially separate liability insurances.
- Separate Xero costs.
- The Ai animation website domain was purchased, hosting paid for via my existing company. So would I need to correctly/legally pass the ai animation website to the new business as a business asset? ... Either selling it to the company for £1. Or some other solution. I’m hoping since I’m a 100% share holder of the current business and would be the same for a new business the process would be relatively straight forward.

So no huge costs related to doing it, but extra on going monthly expenses regardless of if it is ultimately successful or not.

But I'd like to make sure it’s correct just in case there are future investors interested in the venture.

Benefits.. having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either in current business or AIAnimation in the future would be simpler if that situation ever arose.

There will no doubt be tax implications. If your existing accountants can't help you feel free to dm me for a recommendation.

 

[conferenceca]

Hey,

Firstly, wow! I haven't been here for nearly five years. I first joined the forum back in 2013 when I was setting up my own animation studio business. 11 years later, it's still successfully going... so err... thanks for all the help back then. Plus, I love that despite this, it still says I'm a 'regular poster'.

Background:
Alongside running the animation studio. Over the past year I setup a separate website focused around AI and animation, to try and stay ahead of the times. Which has done well, with over 4000+ free registered creatives, a popular related YouTube channel on the subject. Plus making some money through sponsorship on the site/channel.

Plus over the past 6 months, I've been steadily working away on some pretty cool AI tools that I think there's demand for. To offer a subscription service (SAAS) through the new and well-ranking website and start generating some revenue with all the potential that a startup might have.

I'd like to be able to apply for various UK business grants to help further the new business venture and really go all in. But as my company has been going for 13 years, I'm not eligible for lots of potential startup grants and potentially less attractive to Venture capitalists (if/when that time might come).

So I'm considering setting up a 2nd Ltd company just for the new AI animation related business.

Any advice on whether this approach is a good/bad idea would be welcome.

I think the benefits would be:

Having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either toward the animation studio, or the AI animation site in the future would be simpler if that situation ever arose. It should also open up more opportunities for grants.

Current thoughts:

- Small fee to setup the new Ltd business.
- (*Purely out of interest is setting it up as a US company possible/ beneficial.. just thinking where the best chance of future investment might lay).
- Are there extra tax implications I’m not aware of in running two businesses.

I assume there would be a need for:
- 2nd Business bank account.
- Separate business accounting via my accountants. (originally found via this site...
- Separate book keeping costs (via my book-keeper)
- Potentially separate liability insurances.
- Separate Xero costs.
- The Ai animation website domain was purchased, hosting paid for via my existing company. So would I need to correctly/legally pass the ai animation website to the new business as a business asset? ... Either selling it to the company for £1. Or some other solution. I’m hoping since I’m a 100% share holder of the current business and would be the same for a new business the process would be relatively straight forward.

So no huge costs related to doing it, but extra on going monthly expenses regardless of if it is ultimately successful or not.

But I'd like to make sure it’s correct just in case there are future investors interested in the venture.

Benefits.. having it as a separate company would make it clear what either company is doing in terms of revenue/profit. Selling (or receiving investment) either in current business or AIAnimation in the future would be simpler if that situation ever arose.

Hi stormy3000,

It sounds like you’ve built something impressive with your animation studio and your new AI-focused venture. Setting up a second Ltd company seems like a smart move for keeping things clear and potentially unlocking new funding opportunities. Given your plans, separating the two businesses could simplify financial tracking and future investments.

For specifics on taxes and the best approach to setup, consulting with an accountant is key—they can provide tailored advice. If you need a recommendation for a good accountant, just let me know!

Best of luck with your new venture!

 

[stormy3000]

Thanks all for the replies.