My OH is starting a small business (a baby spa and massage service) using a small loan. It will be part time, alongside working 3 days. We’re trying to figure out how to set up.
Limited company seems better than sole trader on paper, but more complicated especially when it comes to getting paid. Is there a generally accepted best way of setting up, and if so what is it?
I’ve read that you can pay yourself a salary as a limited company, and also take money out via dividends, but I presume neither is viable when you’re just starting out and the money has to go into the company? Also wondering how a loan to a limited company would work. I presume it’s hard to get a loan that way because the lender would have less protection given personal assets aren’t at stake.
Any other advice for a new small business owner would be appreciated.
Limited company seems better than sole trader on paper, but more complicated especially when it comes to getting paid. Is there a generally accepted best way of setting up, and if so what is it?
I’ve read that you can pay yourself a salary as a limited company, and also take money out via dividends, but I presume neither is viable when you’re just starting out and the money has to go into the company? Also wondering how a loan to a limited company would work. I presume it’s hard to get a loan that way because the lender would have less protection given personal assets aren’t at stake.
Any other advice for a new small business owner would be appreciated.
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