Experience in running two limited companies?

larryclack

Hi folks, 

I've just recently taken the leap and setup a business as a limited company which I'm director and the sole employee of, I'm also looking at setting up another business which will start trading early next year. Not a million miles apart in terms of the industry they're in but very different brandings and target demographic etc. 

I was just recently looking into the best way to be potentially paying myself a salary as director and seems like there's a multitude of options with paye and dividends being the most obvious. But just wondered if anyone had any tips or advice for running and working two businesses concurrently and how that could work? Paying yourself from one and just reinvesting profits from the other? 

Any advice or experience much appreciated!   

larryclack

I'm looking to be the only employee on the books, anyone else employed will likely be just on a self employed basis.  

larryclack

One could potentially be working for the other as well, just to throw an interesting spanner into the works... 

Jeremy535897

There is no company law reason why one company cannot operate two businesses as you describe. Are they actually two businesses or two markets? Think carefully before incurring the extra costs, particularly if one is going to invoice the other. Associated companies are unlikely to be a method that can be used to minimise NIC, for example:
https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim10010

larryclack

They're completely separate brandings which is why I wanted to get them both registered as limited companies. Two distinct businesses in separate markets. What are the extra costs? Things like accounting etc? 

Jeremy535897

Two companies tend to get messier, as one will pay the other's bills for example. Effectively you double the administrative costs like accountancy, and there can be issues if you don't want to VAT register and their combined turnover exceeds £85,000.