LLP or LTD for mixed age Joint VentureMake Text Bigger
LLP or LTD Co.? We are a group of 4 individuals – all 40% tax payers looking to do a Commercial to Residential flip. Gross Development Value (GDV) £2.2M Net profit £450k (when the last of the 12 Residential units has sold!)
We will be borrowing from friends and family as well as the “banks” and each wish to protect our private lenders privacy (and maybe finding a way to do some legal kind of profit share with them)
Our ages vary from 30 to 65. Two have partners on little or no income. We have very different attitudes to how we each want to use the profits. We don’t want to keep the company after the last unit is sold.
Thus our thinking is to have an LLP. Each of us then set up a Ltd(Limited Liability company)! Each ltd will be a partner of the LLP. Thus the profits will go to each partners limited company. Hence each finds their own way forward for Taxation.
I am aware we will need two people to run the LLP, which will be a low paid role.
Several people, including accountants have said – Hmmm are you sure an LLP is the right way forward?
My accountant said – “Ive got LLP’s on my books, but I’ll have to have a think about this”.
- Am I asking too much of my accountant?
- Are LLP’s dead?
- Have I got it wrong?
Withheld my name as the deal is not yet signed!
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