I'm just setting up a Ltd after careful trawling of these forums and other sites but now have a quick question about making my wife a shareholder.
There is the complete intention that she'll work for the company but until I get on my feet and sorted and settled in my current contract I'm not going to have time to bring in the business.
I'd obviously like to make her a shareholder for tax reasons and she'll be doing all the admin and get started on the marketing and websites for other aspects I plan for the business.
Do HMRC need to see some sense in the split of shares? I'll be the major shareholder as certainly in the next couple of years I'll be bringing in money and she'll just be helping me in running the business. However without her skills the other business opportunities couldn't be pursued so she needs to be paid and given dividends.
Is a 7:3 split of 10 shares suitable or is anything other than 100% shares for me a big flag saying "investigate me?" This is the level at which I see her input, commitment and risk.
Cheers, Andy
There is the complete intention that she'll work for the company but until I get on my feet and sorted and settled in my current contract I'm not going to have time to bring in the business.
I'd obviously like to make her a shareholder for tax reasons and she'll be doing all the admin and get started on the marketing and websites for other aspects I plan for the business.
Do HMRC need to see some sense in the split of shares? I'll be the major shareholder as certainly in the next couple of years I'll be bringing in money and she'll just be helping me in running the business. However without her skills the other business opportunities couldn't be pursued so she needs to be paid and given dividends.
Is a 7:3 split of 10 shares suitable or is anything other than 100% shares for me a big flag saying "investigate me?" This is the level at which I see her input, commitment and risk.
Cheers, Andy
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