I asked a question a few months ago about buying out my partner using a BBL. It was a traditional partnership and I had a capital balance to withdraw, but needed the BBL to produce liquid cash as the business had very little liquid assets. This has now happened and I am now a sole trader.
I'd like to become a limited company. Nothing dodgy. Just want to save tax as I don't need to take out all the profit each year. Can I do this with a BBL attached? I still intend to repay the loan. But wanted to check that it was okay and that they (HMRC/BBB etc) won't deem that the business with the loan has closed and request repayment immediately? It's the same business, just incorporated.