Offshoot Business

Hi All,

I'm planning to go into businees with a friend who already has a ltd company in the field i want to go into, we dont expect to make any money at the moment but yet we want it all to be above board.

He mentioned maybe creating a new business name as an offshoot from his company, could anyone tell me what the pros and cons of that would be?

Thanks

Does he mean a subsidiary company or simply registering a trading name for his own company?

Will he make you a director / shareholder of his company, or the newly formed company, or will you be an employee or self-employed?

In essence, how will you invest (time or money), how will this be accounted for, how will you get paid, how will the responsibilities and rewards be divided?

He already has an up and running company with a company name, our venture will be a seperate entity with its own name.
My friends business partner said he is not intersted being involved in it but is happy for us to go ahead as offshoot.

Within the newly formed company I will be investing both time and money as will my friend and we will be splitting everything 50 - 50

So will you be setting up a separate Ltd company and be a 50% shareholder and director?

This will then not be an offshoot of his original company - it will be an entity in it's own right.

As a Director you will have certain responsibilities, and I would advise you to take professional advice before entering into any such arrangement.