Prepare for a useful conversation
Facts and questions to gather before deciding.
Good advice is easier when the adviser understands the people, risks, assets, money and plans behind the business.
People and ownership
- Who will contribute money, assets, work or contacts?
- Who should own the business?
- Who will make decisions?
- Should votes, profits and capital follow the same percentages?
- What happens if somebody leaves, dies, becomes ill or disagrees?
Activity and status
- What will the business sell and to whom?
- Could any work actually be employment?
- Are licences, professional rules or client-money requirements involved?
- Will work take place overseas or involve overseas owners?
Risk and protection
- What debts, leases or contracts are expected?
- Could customers or third parties make substantial claims?
- Will lenders require personal guarantees?
- Which risks can be insured?
- What personal assets might otherwise be exposed?
Money
- Expected turnover and taxable profit?
- How much cash must owners withdraw?
- How much might remain for growth?
- What other income do the owners have?
- Will salaries, dividends, drawings or pension contributions be considered?
Assets and transition
- Does an existing business already own equipment, stock, goodwill or intellectual property?
- Is land or property involved?
- Which contracts and bank arrangements must change?
- Are employees transferring?
- What happens to VAT registration and invoices?
Administration and future
- Who will maintain records and meet deadlines?
- Is public Companies House information acceptable?
- Will investors or new owners join?
- Could the business eventually be sold?
- How difficult would closing or changing the structure be?
Questions to ask directly
- Which structures are legally available for this activity and ownership?
- What are the tax consequences now and under realistic future scenarios?
- What is excluded from your comparison?
- What legal agreements or insurance should accompany the structure?
- What would transferring or closing the business cost and involve?
- Which decisions need a solicitor, tax adviser, financial adviser or regulated specialist?
Free initial question: you may email martin@mrsbookkeeping.co.uk or call 07427 931179. There is no obligation and no charge simply for getting in touch.