londonbunnycat started this topic @ 15:32 on 30/05/2008
My boyfriend is a skilled craftsman and is striking out on his own. His specialist area (stone tiling) is quite niche and high priced and so he's decided to go it alone. I work full time already but am going to set everything up for him - company, website, do PR (is my full time job anyway), accounts etc in the evenings. It is his full time job so he'll need to take all of the profits as his salary which is fine. We're looking to get married soon but until that happens I want to be cautious - this is going to demand a huge amount of time and effort and should anything bad happen (i.e. should we break up for any reason), I want to know I could get something back to compensate me for the work I've done for free. Is there a way to set up a company so that he is the only one drawing a wage but so that my work in running it is acknowledged?
RE: Starting company with bf - will be his full time job and I'm just doing admin in evenings - but if I help make it success I want legal protection in case worst happens & we break up?
TFGTV | 01/06/2008 11:29 AM
Yes indeed there are a couple of ways you could do this.
One is of course to set up a Limited Company; though the issue of drawing wages may be rendered a tad complex in terms of personal cash flow. Ownership of the business though is quite easily established as part and parcel of the set up process.
Another way is to draw up a formal business partnership agreement. And whether it's your Fiance', a bloke you met down the pub or your siamese twin this is an absolutely essential step. Nobody has anything to fear from a legitimate contract and if they won't agree to it you need to consider your position.
Drawing 'all of the profits' as wages (whether Limited Co or not) isn't a great idea; you need to provide for growth and development as part of an overall business plan.
However the best advice I can give is that you'd really need one to one advice from an accountant to make an informed decision as to which structure will work best for you as Individuals and later as a married couple. Likewise on the partnership agreement; this isn't an area for amateur dabbling; you need an appropriate solicitor's help.
------------------------
Matt Quinn.
www.tfgtv.com
Corporate Communication for SMALL Businesses!
RE: Starting company with bf - will be his full time job and I'm just doing admin in evenings - but if I help make it success I want legal protection in case worst happens & we break up?
londonbunnycat | 02/06/2008 08:42 AM
Matt
Thank you so much for your help - you really clarified our options for us! We've decided to go with the contract option and we'll get an accountant to help us set up.
LondonBunnyCat
