Business Structure Sole Trade / LTD & setup costs

Spark Plug

I am planning to open a new business in mid-2023, in advance of this I will need to get a corporate logo/brand designed, get a website designed and purchase IT and camera equipment. At the moment I am a PAYE employees the funds for this venture will come from my own resources. My employer has strict rules regarding directorship etc and I would prefer not go asking them can I be a director or alerting them to this plan (they are in an unrelated business).

At the same time I am conscious that I am ploughing my own money into a venture and if the venture succeeds and turns a profit. Can I establish a company with myself as majority shareholder and my wife as sole director (for the moment). I would provide the company with a shareholder loan (repayable on demand) in order for the company to incur this expense and then once the venture turns a profit, the company could use any profits to repay the shareholder loan. I don't think the sole trader route would allow such flexibility. In any event I plan on meeting up with an accountant to walk through the options.

callaway92

Your contract with your current employer will be important here. If you're completely going against the contract you could be liable to action

Does the contract mention 'in a similar field'?

Can you give a hint of what field you are in now and what you're going into?

Spark Plug

Thanks for your reply contract doesn’t have a non compete clause or gardening leave. I’m insurance and the business will be in property management so unrelated.

callaway92

As far as I would suggest so, you’re good to go with whatever way you’d like

*bit clumsy of your employer to not have any none compete clause at all but that’s their own fault