Partnership - Recommended legal structure?

zudecke

Hi guys,

A good friend of mine and myself are embarking on a new eBusiness venture. The site and business require very little in the way of capital and we reckon we can do all the design and development work ourselves, so we won't require any bank loans etc.

With that in mind, what is the recommended legal structure for a business of this nature?

Bearing in mind my partner is based in the Netherlands and me in the UK.

What's the most tax efficient set up and are there any concerns or potential pitfalls we should be weary of?

Also - the business falls in the gambling sector, so if anyone foresees any complications or has any comments r.e. that, please shout.

Regards,

Z

steve1980

Speak to an accountant. That's the best piece of advice you'll get.

Annisele

I agree; you certainly need to speak to an accountant - and possibly also a lawyer.

If everything was UK based I might have taken a punt, but I've no idea even what the options are for setting up a business in the Netherlands.

Re the gambling - if you're going to set up in the UK, you might need a licence.

GilbertGradgrind

You will need gambling licences both in the UK and Netherlands. The most obviousl legal structure is a limited liability partnership. However, because of the gambling element it might well be best to opt for a limited company - a Lawyer and Accountant should be sought to advise on that. Quite simply because there are both legal and financial issues that are at the front of any Gambling business.

There will be a need to determine which is the most appropriate tax jurisdiction. The UK and Netherlands have reciprocal taxation agreements. So, there is the possibility that tax could be witheld in the Netherlands (or in the UK) and only recovered from the Revenue at a much later date. This does mean a certain amount of planning is needed for cash flow on an regular basis. So, you would need to be certain of being able to do that administration.

The Gambling sector is fairly tightly regulated and you will both need to ensure that you comply to money laundering legislation - openly, transparently and with clarity. For this reason you might be required to have extensive background checks completed in order to assure the Comany Registration Authorities of your suitability to run such a business.

zudecke

LOL, sorry guys, I mislead with my original post.

We're not setting up a betting site, but an affiliate/tipsters site.

SO we do not need any licenses. Just the most tax-efficient set up for withdrawing the funds from the various operators.

That help much, or still see an accountant?

zudecke

anyone???????

Annisele

Sorry, I don't have anything to add to what I said before - see an accountant.

The most tax-efficient set up for you is likely to depend on your other income/assets/plans for the business.