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How to lend husbands limited company money?

eddiedog
eddiedog Posts: 20 Forumite
Part of the Furniture 10 Posts Photogenic
in Loans
I'm looking for some advise please. My husbands limited company needs some start up capital, which I have and am happy to provide. I don't want to become a shareholder of the company as I don't want to receive dividends just non taxable loan repayments. Any ideas how we should formalise the loan to the limited company that gives me the most protection? I don't for a second think he'll run off with the cash but equally I don't want to be foolish with all my savings.

Any advice will be much appreciated.

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    eddiedog wrote: »
    I'm looking for some advise please. My husbands limited company needs some start up capital, which I have and am happy to provide. I don't want to become a shareholder of the company as I don't want to receive dividends just non taxable loan repayments. Any ideas how we should formalise the loan to the limited company that gives me the most protection? I don't for a second think he'll run off with the cash but equally I don't want to be foolish with all my savings.

    Any advice will be much appreciated.

    In writing, signed by yourself and the company director aka your husband.

    The company might also like to have a board meeting of its sole director and pass a resolution along the lines of,

    It was resolved that the company had accepted a loan of £x from Mrs A. Anybody; the loan is interest free and repayble on demand.

    Or whatever it is that you want.
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Do bear in mind that if the the business fails, he will have no personal obligation to repay the money if you need it - the business will be the debtor.

    Sorry, I've seen a lot of the threads on here about mixing money and family. Doesn't always end well.

    Best of luck.
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • eddiedog
    eddiedog Posts: 20 Forumite
    Part of the Furniture 10 Posts Photogenic
    Thanks both.
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