Two companies trading under one website

[Coco0k]

Hi,

Can i sell items made with business partner under company 1 which is spilt 50:50 under a website and also sell items i make by myself under company 2 which is also sold via the same website 100% me.

The website is run by company 1
So when a customer purchases an item made by company 2 via the website
Company 1 just transfers the funds to company 2 as there is already an agreement to do so in place. The profit is recorded in company 2 accounts. Company 1 just record the income and transfer.
If a customer purchased an item made by company 1 then it is processed as normal and profit accounted for under company 1

Does it matter that i have ownership in both companies? They are selling different things.
Company 2 plans to sell items via other websites too but for now this is the first.

Just looking for clarity.

many thanks in advance

 

[kkfcXHzmCc]

Have 1 company... It doesn't need to sell one niche. call it Coco0k LTD; doesn't matter. The way you've sad it make it seems like possible tax avoidance...

 

[Coco0k]

Have 1 company... It doesn't need to sell one niche. call it Coco0k LTD; doesn't matter. The way you've sad it make it seems like possible tax avoidance...

No tax avoidance. If I make something 100% then I dont see why I should split the profit with someone else that has done nothing to contribute to the product. Profit would be taxed under company 2 as all the costs to make it are under company 2. Its just sold via company 1 website Sort of like a reseller/ or distributor.

 

[Newchodge]

You might hit VAT issues. Will company 1 hit the VAT threshold by including compny 2's turnover in company 1's accounts.

 

[Coco0k]

You might hit VAT issues. Will company 1 hit the VAT threshold by including compny 2's turnover in company 1's accounts.

Oh yes that is something to consider. Thank you for that. Is the original idea/concept fine though?