I have been approached to advise on Ltd Co v alternatives, for a group of seven friends thinking of running a business together. Although I do complete small Ltd Co accounts only for companies with 1-3 folk involved. I seem to remember there being a rule of only 5 people involved to be allowed to be a "Close company" and take advantage of the relevant perks?
Has this changed? Are there ways around this i.e. 7 shareholders/ only 4 or 5 directors? Don't know the full set up yet, but didn't want to miss-advise as very early days yet.
Many thanks in advance :-)
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Relevant perks? What relevant perks? There aren't any relevant perks to being a close company. There are some decidedly non-perky aspects to being a close company, like S. 455.
The best way not to misadvise them would be to send them to somebody who knows what they're talking about, surely?
Assuming that they're all going to have an equal stake or just that they will all be directors, it will be a close company; one that is controlled by 5 or fewer participators or any number of directors.
There ain't no bloody perks though.
Don't mention it
I learnt that particular compliment at charm school.
We've found an advantage to being a close company though! Or more correctly, an advantage of being either a close company or an employee-controlled company.
Interest relief?
What about interest relief on loans to invest in the company?
Struggling to think of anything else!