What would you advise?

mrswalton

Husband and wife with many varied skills and small business ideas. Wish to become self employed, and set up a company in which many small ideas can be channeled through.

For example he is good with his hands, he might get a painting job for 2 weeks, then make and sell chicken coops, she might give garden advice during the summer and make Christmas door wreaths later in the year.

The point is, this is the way they want to work, sort of seasonally. They don't wish to focus on one particular area. Some of the areas they would like to work are seasonal and as such would be difficult to earn a sufficient wage.

Is this 'business model' of dipping in and out of lots of different things daft or does anyone know of anyone doing it.

If it could work, how would you go about setting up/structuring the company.

Would a partnership under a general heading of 'services' be reasonable?

Your thoughts would be appreciated.

Peterdalkey

Fill out form RBN1A http://www.cro.ie/ena/forms_r_bnames.aspx to form an unlimited partneship with a name such as "The Waltons"
Register with Revenue http://www.revenue.ie/en/business/running/registering-tax.html#section3 form TR1.

You are good to go! If you can get the work and it gives you a living/income... do it!

pedroeibar1

I would not jump into the partnership route without legal or accounting advice. Nor am I convinced that a limited partnership should be the route, as both husband and wife have diverse activities and are active in the running of the business. While all the partners are entitled to share equally in the capital and profits of a business they must contribute equally towards any losses. Partnership is a complex area - general or limited partnerships. I agree that there are positives with partnerships, e.g. tax advantages and no accounts have to be filed, but there also are more than a few negatives.

Peterdalkey

Given the operational outline model provided by the OP, and if they wish to trade under a style, it is unlikely that they will be generating any meaningful creditor balances. A partnership also allows them to write off failures of one side against income on the other. Say Christmas was cancelled and no wreaths that had been made were sold, as a stupid example!"

pedroeibar1

I sort of see where you are coming from, but I still maintain that a partnership is the wrong way to go.

The OP mentions

mrswalton wrote: »

Husband and wife ...... Wish to become self employed, and set up a company in which many small ideas can be channeled through. ..... They don't wish to focus on one particular area. ......If it could work, how would you go about setting up/structuring the company. Would a partnership under a general heading of 'services' be reasonable?

which confuses company/partnership entities.

A partnership is quite complicated and the governing law is more than 100 years old, so that has an impact on present day business practice. Partnerships do not have any legal personality, so they cannot borrow or own property (all must be done in the partners‘ names.) Limited partners cannot take part in the management of the partnership business and do not have the power to bind the partnership.

You state

Peterdalkey wrote: »

Given the operational outline model provided by the OP, and if they wish to trade under a style, it is unlikely that they will be generating any meaningful creditor balances. A partnership also allows them to write off failures of one side against income on the other. Say Christmas was cancelled and no wreaths that had been made were sold, as a stupid example!"

but I’ve already said that above – however, that rule also applies to a sole trader or to a ltd entity. Creditor balances are not relevant as even in a limited partnership each partner is liable for all the debts of the partnership without limit (in time or amount.) Also, smarter/more experienced suppliers don’t like partnerships because in the event of non-payment they have to sue each of the partners individually.

Because the OPs’ business activities are so diverse I’d suggest that they consider operating individually as sole traders. In the event that one of the pair grows his/her business and wishes to ‘convert’ to a limited company it would be considerably easier. Assets (and liabilities) would be more equitably treated. And I don’t want to even consider what would / could happen to a partnership should the couple decide to separate (maritally). Even if they wanted to create a limited company ‘ab initio’ it could easily be done by tweaking the M&A to cover all their diverse activities.

tarmon

Not sure if it applies to you but dont forget to check out the implications (of you both being self employed) Social Welfare wise. Just in case things dont go to plan and you have to fall back on it.

Peterdalkey

I sort of see how one can be diverted by complications and as Sir Humphry used to say " I can see foresee unforeseen circumstances". As one who has been down the marital breakdown road, this is chicken feed! I am not saying you are wrong perdroreibar but perhaps a little over cautious. They can get the info but must make their own decisions!

pedroeibar1

Peterdalkey wrote: »

They can get the info but must make their own decisions!

I agree fully once the decision is made on an informed basis.:) I'll leave the last word to Donald Rumsfeld -
There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know.

Peterdalkey

pedroeibar1 wrote: »

I agree fully once the decision is made on an informed basis.:) I'll leave the last word to Donald Rumsfeld -
There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know.

I know that!

terryhobdell

Saw a thing called Rent a Husband.Think it is an Aussie franchise might be worth checking.

Ill be honest it sounds like a daft business model. Floating around from one thing to another and not focusing really on any one area and building it properly and executing everything properly, its doomed to failure.
And if you were to proceed with it it needs to be a limited company because with all these various things going on that you are not really an expert or striving to be the expert in, you will make mistakes, and when a faulty chicken coop falls apart and the chickens go on a revenge mission outside the local church, you could be looking at a foul lawsuit, that will see you making those wreaths for your partnership well before the xmas period.

Peterdalkey

My reading was that this was a lifestyle choice not a full on traditional buisiness with him doing handyman type work and she selling her craft products.

Peterdalkey

Peterdalkey wrote: »

My reading was that this was a lifestyle choice not a full on traditional buisiness with him doing handyman type work and she selling her craft products.

Is there a place for such a strategy in todays world, given the long list of competition in anything and everything? It maybe be a lifestyle choice, but the business has to work to support the lifestyle, otherwise the lifestyle will suffer significantly

Atomico

mrswalton wrote: »

Husband and wife with many varied skills and small business ideas. Wish to become self employed, and set up a company in which many small ideas can be channeled through.

This sounds like you want to set up your own business and make your living that way. Unless you mean in addition to your main job(s)?

mrswalton wrote: »

The point is, this is the way they want to work, sort of seasonally. They don't wish to focus on one particular area. Some of the areas they would like to work are seasonal and as such would be difficult to earn a sufficient wage.

This conflicts with the above statement somewhat, since if you want it to work on a seasonal basis, then maybe you don't need to make a living from it alone, and it's more a side gig?

mrswalton wrote: »

Is this 'business model' of dipping in and out of lots of different things daft or does anyone know of anyone doing it.

I wouldn't say it's daft, but it's certain not to work if you are looking to earn a living from it. You really have to have one major focus if you want to make a living from working for yourself (imo anyway).

On the other hand, if it's more a lifestyle business which will add to your main income, then knock yourself out!

mrswalton wrote: »

If it could work, how would you go about setting up/structuring the company.

Will depend on the responses to all of the above points

Peterdalkey

Deleted User wrote: »

Is there a place for such a strategy in todays world, given the long list of competition in anything and everything? It maybe be a lifestyle choice, but the business has to work to support the lifestyle, otherwise the lifestyle will suffer significantly

That is the challenge to the OP, one has to assume that they have spotted the openings in their local market. It is alweays easy to express an idea, the hard work comes with execution! If they know there is a maket, fine, if they do not, they should find out.

jcon1913

terryhobdell wrote: »

Saw a thing called Rent a Husband.Think it is an Aussie franchise might be worth checking.

No rent a wife franchises available???