9:42 AM, 11th November 2014, About 7 years ago 10
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!
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Advice and implementation provided by a practising Barrister-At-Law with £10,000,000 of Professional Indemnity InsuranceBook Now
Previous ArticleCashflow benefits of 2 x 2 benefits tenant stratagy
|“Account”||means an account required to access and/or use certain areas and features of Our Site;|
|“Cookie”||means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;|
|“Cookie Law”||means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;|
|“personal data”||means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and|
|“We/Us/Our”||Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.|
|Name of Cookie||Purpose||Strictly Necessary|
|JSESSIONID||Used only to collect performance data, with any identifiable data obfuscated||No|
|__cfduid||This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.||Yes|
|Name of Cookie||First / Third Party||Provider||Purpose|
|__utma, __utmb, __utmc, __utmt, __utmz||First||Helps to understand how their visitors engage with our website|
|_fbp||First||Helps to understand how their visitors engage with our website|