What is the simplest method for bringing in a new investor to 1 yr old business?
A client has a business which commenced a year ago.
The business is not worth much on paper but it is likely to take off (large orders in pipeline) and she wants to bring in an investor to the business pref through shares to help support the growth. Additional premises is likely to be needed and also purchasing of stock to fulfil orders.
Any pitfalls/ suggestions welcome.
A % of the equity at present value would be minimal. I imagine a commercial lawyer will have to be involved to ensure that the legalities of the arrangement are clear especially if a % of future profits is to be expected.
Is loan at fixed % rate better than equity for example?
I would welcome any thoughts on what considerations should be made before making a final decision on how to bring on additional investors.
- Annual Return for company for whom director/shareholder has died 61 2
- Paid too much !! 346 3
- New (non resident) client not filed in 20 years 191 2
- Sage Instant Accounts Complete De-install problem 114 3
- Credit against UK NI for NI paid to EEC Countries 239 1
- will this work for IHT 260 2
- Best software for small practice? 661 20
- Auto enrolment confusion 1,756 39
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 308 7
- Taxfiler been down since mid-afternoon 256 5
- Anyone having problems with Taxfiler 511 17
- Gifting Shares to a Limited Company 151 1
- Company separation for Wholesale & Retail businesses 123 1
- Selling a VAT Qualifying vehicle at a loss 129 1
- Paying dividends to Ordinary shares with different nominal values 484 15
- 2012 13 HMRC QUERY 756 11
- Sports Sponsorship 181 1
- New Shareholder and Purchase of Own Share 291 17
- Opt To Tax Refund 218 2
- Divorcing husband, both 50% owners of a Ltd business 300 6
- Self employed and HMRC Worldwide Subsistence Rates 769
- Interest paid - do new rules affect Tax Credits? 456
- Market Invoice (P2P invoice discounting) tax treatment 276
- DTA tie-breaker issue 263
- Tax on internet ad sharing income 251
- CGT for NOn UK residents 224
- Apprenticeship Levy 203
- What are the tax implications of overseas sales through a UK based company? 195
- Capital Gains personal representatives 184
- Just checking re PSA 178