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Does our management company have to be a Limited Company
Cardinal-Red
Posts: 664 Forumite
Hi,
We live in a block of 4 flats, and each flat owner has 1 share in a Ltd Company whose only activity is the management of the property. It's income for the last financial year was £812; its expenditure, predictably, exactly £812.
Now the accountants have charged us £175 for the preparation, filing and production of our annual accounts. I know this is a legal requirement for Limited Companies.
My question is, is there any requirement that the management company be registered as a Limited Company? Or could we, say, wind the company up and establish an LLP with each homeowner equal partners.
The relationship is absolutely amicable between us all, and we all agree as and when work will be done etc. There is no standing service charge as such, rather we split bills as and when they come in.
Does anybody have any opinions?
We live in a block of 4 flats, and each flat owner has 1 share in a Ltd Company whose only activity is the management of the property. It's income for the last financial year was £812; its expenditure, predictably, exactly £812.
Now the accountants have charged us £175 for the preparation, filing and production of our annual accounts. I know this is a legal requirement for Limited Companies.
My question is, is there any requirement that the management company be registered as a Limited Company? Or could we, say, wind the company up and establish an LLP with each homeowner equal partners.
The relationship is absolutely amicable between us all, and we all agree as and when work will be done etc. There is no standing service charge as such, rather we split bills as and when they come in.
Does anybody have any opinions?
The above facts belong to everybody; the opinions belong to me; the distinction is yours to draw...
0
Comments
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Having the Ltd Co probably does limit some liabilities and makes it easy to transfer part ownership to the next buyer. Mortgage lenders may want it this way for some technicality, too.A house isn't a home without a cat.
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