Hi,
A friend and I both trade using Ltd companies (A and B). However, we are venturing into a new area of business which we will be working on together and would like to isolate this from our own companies, and also give it a separate identity (C), but we are confused about how to set up correctly/efficiently, and have had conflicting advice regarding structure.
Some advice inferred that if we set up C as a Ltd company, with us each as human directors/shareholders, then all 3 companies may become linked, definitely for VAT purposes and possibly in other ways as they are under common control?
Another piece of advice was to form an LLP with corporate members. To me, this seems the most appropriate option, A and B could invoice C for services (at a market rate) and any profit left would be paid to A and B, and is then up to shareholders of each where that goes.
What are the benefits/consequences of each, or are there any other options we should be considering?
Thanks in advance.
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