I have a limited company and was wondering if it is wise to use the profit to build a cow shed on my dairy farm and then the farm could pay my company a rent each year. The farm could eventually purchase the shed from my company.
I understand that my company would not own the land but would own the shed and this would be considered an asset of the comapany.
Thus instead of the farm getting a loan to build the shed I want to use the money I have in my company.
What are the pitfalls here and is it a good or bad idea??
I understand that my company would not own the land but would own the shed and this would be considered an asset of the comapany.
Thus instead of the farm getting a loan to build the shed I want to use the money I have in my company.
What are the pitfalls here and is it a good or bad idea??