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Merging 2 limited companies
tbumps
Posts: 36 Forumite
Hi
I currently run 2 limited companies (my husband & I are directors of both). We set up a second company when we started a new business (retail) and wanted to keep things separate (also issues of childcare vouchers, etc. which were relevant at the time but not now...)
We're looking to take out a commercial mortgage on a property which would be used by both businesses. Both businesses are fairly new (both set up in 2007) and will just about break even this year.
Would it make sense to merge the businesses at this point so that at least the finances are clearer & there's more chance of a profit for the combined business if one is due to make a small loss? If so, would I do that at the end of this financial year for simplicity's sake?
As there is one quarter of this finanical year left, would it also make sense to do whatever we can to boost sales (i.e. not claim expenses, minimise wages, maybe have a sale to shift some stock & maximise revenue?) Anything else that would be useful?
Is there any particular disadvantage to merging companies or any real logistical difficulty?
TB
I currently run 2 limited companies (my husband & I are directors of both). We set up a second company when we started a new business (retail) and wanted to keep things separate (also issues of childcare vouchers, etc. which were relevant at the time but not now...)
We're looking to take out a commercial mortgage on a property which would be used by both businesses. Both businesses are fairly new (both set up in 2007) and will just about break even this year.
Would it make sense to merge the businesses at this point so that at least the finances are clearer & there's more chance of a profit for the combined business if one is due to make a small loss? If so, would I do that at the end of this financial year for simplicity's sake?
As there is one quarter of this finanical year left, would it also make sense to do whatever we can to boost sales (i.e. not claim expenses, minimise wages, maybe have a sale to shift some stock & maximise revenue?) Anything else that would be useful?
Is there any particular disadvantage to merging companies or any real logistical difficulty?
TB
0
Comments
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Presumably you have discussed this with your accountant. What did he say about it?When dealing with the CSA its important to note that it is commonly accepted as unfit for purpose, and by default this also means the staff are unfit for purpose.0
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or indeed, what did she say?When dealing with the CSA its important to note that it is commonly accepted as unfit for purpose, and by default this also means the staff are unfit for purpose.0
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He's having a lovely long hot holiday sunning himself on the profits from doing my books & has no comments!0
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Time to find a new accountant?
Seriously, if you need advice and your accountant isn't available to give it to you ...Signature removed for peace of mind0 -
Sorry but this is too complex an issue to be resolved through a public forum - there are just too many possibilities and potential taxes involved.0
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He's back off holiday today. Don't worry, Rolo, no plans to take professional advice from here, just wondering about general principles.
TB0
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