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My wife as company director

  • 16-12-2010 11:59am
    #1
    giammarcoschis
    Closed Accounts Posts: 4 ✭


    Dear all,

    I am planning to set up a limited liability company, and my accountant told me that two people are required to set up the company.

    I thought that I could ask my wife to set up the company with me.

    However, my wife is employed in public sector, and I wonder if there are any implications that I should be aware of before I go ahead and register the company with her?

    I would not like her to be penalised in any way (e.g. earning less) because of my business.

    If you can think of anything negative about this decision, please let me know.

    Your advice would be highly appreciated.


Comments

  • #2
    prinz
    Registered Users, Registered Users 2 Posts: 14,598 ✭✭✭✭prinz


    giammarcoschis wrote: »
    I would not like her to be penalised in any way (e.g. earning less) because of my business...

    If she will be on the payroll of the company then it would have implications possibly for tax bands etc. However her current employers cannot reduce her wages over that. Although she should check her employment contract.
    giammarcoschis wrote: »
    If you can think of anything negative about this decision, please let me know..

    Unless she's in a position to possibly influence the awarding of contracts to the company I don't see a problem.


  • #3
    giammarcoschis
    Closed Accounts Posts: 4 ✭giammarcoschis


    Thank you very much for your help!


  • #4
    cson
    Registered Users, Registered Users 2 Posts: 14,498 ✭✭✭✭cson


    What you're doing is how the majority of private companies in this country are set up; husband/wife operations with a typically 99/1 share distribution.

    She'll be listed as a director with no involvement in the day to day running of the business and unless you're paying her a salary or dividends, then tax ain't an issue.


  • #5
    giammarcoschis
    Closed Accounts Posts: 4 ✭giammarcoschis


    Thank you very much for your help! Very much appreciated!


  • #6
    sandyhills
    Registered Users, Registered Users 2 Posts: 71 ✭✭sandyhills


    If your wife holds more than 15% of the shares in the company she will be classed as a propritary director and will be in a different tax band I think S. You only have to have 1 shareholder but need 2 directors so either hold all the shares in your name or have you wife hold less than 15%.


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