UK New Business Venture - 2 directors

[mjcltd2020]

Good Morning

Myself and friend both have limited companies and were looking for an accountant to help with our new business idea and to manage our accounts, payroll etc. going forward and help understand the best way that we should set up the new business

My best friend has his own ltd company (limited company 1) as a mortgage broker. He’s going into business with me who and I also have my own limited company (limited company 2) again as a mortgage broker.

Wondering how they are best working this. since the problem is that revenue isn't earned evenly 50/50 between us, it's dependent on what mortgage deals we achieve etc. so we feel it would be unfair to split 50/50 as a new limited company.
Say that we take in say a £1k sale for a mortgage deal then one of the 2 directors’ may have done more work on that deal so to split 50/50 salary and divs would be unfair to split 50/50 so we were for accountancy support for the best way to set up the new venture

Kind Regards

 

[Truemanbrown]

The best way is to set up the company with 'A' and 'B' shares so that you will be able to declare two separate dividends.

You just need to be careful of the amount of dividend that if the higher dividend went to the 'A' shares and the lower dividend to 'B' shares that if you were to pay the higher, equal amount to both shareholders that you have enough accumulated profits to pay because HMRC may challenge under the Settlements Legislation.