Do you think I should be Ltd?Make Text Bigger
Firstly, I’ve just joined and I love this site – So much interesting stuff.
I was wondering if anyone would like to comment about my proposed business structure.
My aim is to set up a business buying, renovating and selling properties, one or two at a time.
I haven’t yet had professional advice, but I am thinking about what would be the best structure for my business:
Briefly, I want to set up a limited company which will be funded by my existing capita,l initially and a fairly low percentage of borrowing if needed. I am a self employed joiner (Sole trader) and will be doing the majority of the work myself. I intend to invoice the new company for my labour on an hourly rate. I don’t intend to take out profits from the company. Longer term, I hope to buy and sell for 10 years or more, then move to keeping some properties for lettings income.
I believe being a Ltd company will be advantageous in my situation, because I am reinvesting profits and only want a wage for the work I do on the properties. Also, I will be self funding initially and don’t envisage heavy borrowing (but maybe I will become more ambitious as the business progresses!) I believe I could charge the company interest on the funds supplied.
I am in the process of buying a flat (as an individual), to renovate and sell to make a clear 20K I believe this could be transferred into the new company within a few weeks? – there wont be time to set up a company before completion of the purchase.
I need advice!
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