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share structure on incorporation

what is the best share structure upon incorporation of limited company for 2-3 shareholders?

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My client has requested that he wants to set up a limited company as more tax efficient than sole trader.  He plans to initially open up as single ordinary shareholder owning 1 share upon incopration. Later he would like his wife  and young child aged 4 (who are not employees) to become shareholders so that they can get dividends as per share representation.  What is best share structure?  Should he have alphabet shares but if done is there a risk of losing entrepreneurs relief following rules adjustment after autumn 2018 statement?  Would he be better to have 3 shareholders at incorporation rather than just him alone (and later issuing shares) to avoid hmrc questioning purpose of extra share categories?

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By Tim Vane
27th Feb 2019 00:22

If he is earning enough from his sole trader business to make it worthwhile incorporating then it is probably worth him taking some expert tax planning advice which can take into account all his future expectations not just the short term benefits.

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By Accountant A
27th Feb 2019 01:25

We established from your previous posting (https://www.accountingweb.co.uk/any-answers/dividend-waiver-17) that you are not an accountant advising clients but someone seeking free professional advice.

If your business venture cannot justify the cost of professional advice, it is not likely to be a success.

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By Tax Dragon
27th Feb 2019 09:20

I can picture the headline:

GARNETT KILLS GANNET

It's kind of Sun meets FT.

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