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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am founder of 3 businesses, holding 40% in each. One of

Customer Question

I am founder of 3 businesses, holding 40% in each. One of the businesses employs me as MD on a salary of £90,000. I don't take any money from the other two businesses but do spend time working on them but could if i wanted to.My current set up doesn't seem too efficient.Would I be better off setting up as a limited company and offering my services to each company for £30k each? or are there any other efficient things I could do?
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

I believe you will need to properly organize your availability with all the three businesses. As of now, though you work for all the businesses and given time all three of them, only one business is taking up your costs to pay you.

In my opinion, you should, as you very rightly said, make a limited company out of this all and if you offer same time to each one of them then charge them 30k each. If you do not given equal amount of time to all three (depending upon the nature of work and your involvement) you can charge each one of them in proportion of time spent on them.

This setup, I believe, would be fair, just and more efficient.

I am sure this would help.

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Warm Regards,