How should I structure my company finances.

Discussion in 'Property Tax and Accounting' started by Jermaine Craig, Apr 22, 2017.

  1. Jermaine Craig

    Jermaine Craig New Member

    Hey all,

    I've set up a new company which I'll be using to purchase buy-to-let properties.

    What is the best / most tax-effective way to introduce the companies' start up capital via my personal capital?

    Director Loan, introduced share capital, any other ways?

  2. James Burton

    James Burton New Member


    As per my knowledge or even what I have studied about. I am sharing some of the

    the Best Legal Structure for Your Business are: -

    1. Sole proprietorship

    2. Partnership

    3. Limited liability company (LLC)

    4. Corporation

    5. Cooperative

    An owner of an LLC pays taxes just as a sole proprietor does: All profit is considered personal income and taxed accordingly at the end of the year.

    "As a small business owner, you want to avoid double taxation in the early stages," (Moderated)"The LLC structure prevents that, and makes sure you're not taxed as a company and as an individual."

    Individuals in a partnership also claim their share of the profits as personal income. Your accountant may suggest quarterly or biannual advance payments to minimize the end effect on your return.

    A corporation files its own tax returns each year, paying taxes on profits after expenses, including payroll. If you pay yourself from the corporation, you will pay personal taxes, such as for Social Security and Medicare, on your personal return for what you were paid throughout the year.

    Last edited by a moderator: Nov 2, 2018
  3. Longterminvestor

    Longterminvestor Active Member

    Personally I would go for a limited company and introduce capital via a formal loan. However, it is worth speaking with your accountant to see the most tax efficient way of doing this.
  4. realdeals

    realdeals Member

    There are certainly numerous benefits regarding buying property within a company. One of the main ones is being able to offset mortgage interest against your income. Those who have acquired buy to let properties in their own name will be well aware that the UK government is phasing out this tax benefit for individuals.
  5. diyhelp

    diyhelp Active Member

    One bit of advice, where possible always keep your personal wealth separate from your company wealth. If your business is a limited company then, unless you have given personal guarantees, your personal wealth and assets will be safe. Even if things look well now, never over expose yourself financially.
  6. adam luke

    adam luke New Member

    i would recommend you to use an easy to use project management software which can help you out managing everything. There is one i knew is called (moderated)
    Last edited by a moderator: Feb 8, 2019
  7. Longterminvestor

    Longterminvestor Active Member

    HI @adam luke

    You sound like an experienced hand in this - have you been investing in real estate for long?

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