Joint venture/other options

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Quick question as this is not something I've dealt with before: I'm currently working for a company (P.R.) where we are going to team up with an individual (sole trader/Ltd) He will bring a client list with him but he will use the resources of our company (desk space and staff expertise/support).  Just wondering the best options here as I believe he would like to remain separate from our business (keep his own company)  A limited co-operation joint venture seems like a possibility but not sure how we would recognise the revenue etc.  Alternatively we could run all the revenue through the business and then he invoices us that would leave a small mark up our side.  Would like to keep it as simple as possible (i.e not setting up a new company) Any thoughts?

Replies (6)

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By Accountant A
14th Jun 2019 12:09

Two thoughts:

(1)

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(2) Get an accountant. What makes you think accountants give away their knowledge and expertise for free? What are you offering in return?

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Stepurhan
By stepurhan
14th Jun 2019 12:25

This is not remotely a quick question. This is a potentially highly complicated question that will depend on the fine detail.

Not engaging good paid-for advice on this would be the falsest of economies.

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Stepurhan
By stepurhan
14th Jun 2019 12:25

This is not remotely a quick question. This is a potentially highly complicated question that will depend on the fine detail.

Not engaging good paid-for advice on this would be the falsest of economies.

Thanks (0)
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By paul.benny
14th Jun 2019 14:09

Ditto to the previous posts.

But to answer your question: the best option is to work out the commercial arrangements - who does what, who contributes what, who received what, who pays what.

Then you can get your adviser to help you put that into effect.

Oh - and don't forget to include dispute and exit mechanisms. Because you will need them sooner or later.

Thanks (1)
By JCresswellTax
14th Jun 2019 14:15

Yes, I have some thoughts.

Thanks (1)
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By Tax Dragon
14th Jun 2019 14:18

Quote:

Would like to keep it as simple as possible (i.e not setting up a new company) Any thoughts?

Treat him/it like a client and bill him/it for services rendered.

Pay for services bought in, which (as has been said) you will need if you pursue any alternative.

Thanks (1)