Setting up new family business
Mar 23rd 2007, 11:45 pm
#1
Forum Regular
Thread Starter
Joined: Mar 2007
Posts: 71
Setting up new family business
Has anyone any experience (or advice) on setting up a business with family.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Mar 24th 2007, 3:57 pm
#3
Straw Man.
Joined: Aug 2006
Location: That, there, that's not my post count... nothing to see here, move along.
Posts: 46,302
Re: Setting up new family business
Has anyone any experience (or advice) on setting up a business with family.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Mar 24th 2007, 5:54 pm
#4
Structural Surveyor
Joined: Mar 2006
Location: Sevilla/Cordoba border
Posts: 1,048
Re: Setting up new family business
As an employer, you would be responsible for the bulk of your employees' national insurance payments, whether they're on a contract or fixed term employment.
A gestoria/asesor fiscal will be able to advise you on the most tax efficient way of operating such a family business.
A gestoria/asesor fiscal will be able to advise you on the most tax efficient way of operating such a family business.
Mar 24th 2007, 7:46 pm
#5
BE Forum Addict
Joined: Jul 2006
Location: up the mountain near Guadalest
Posts: 1,389
Re: Setting up new family business
Has anyone any experience (or advice) on setting up a business with family.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Along with my Wife, Son and partner we will be setting up a bar later this year.
I have been advised the best approach would be for me to register the business in my name, Pay full Ni Contribution (230 Euros p.m). Employ the other 3 on contracts, wherebye they pay N.I contributions pro-rata to their salaries, And I pay business tax on the profits.
Would this mean that I am classed as self employed and as such I can dispose of any profits after tax as i deem fit?
If this is not apprpriate or correct I would welcome any advise you may have.
Mar 28th 2007, 2:29 pm
#6
Just Joined
Joined: Mar 2007
Posts: 10
Re: Setting up new family business
Hello SueG the advice from your gestor is correct so long as you don't actually work in the business. If you do any activity within the business you should be registered with the INEM and social security.
Mar 28th 2007, 6:11 pm
#7
Smarties
Joined: Jan 2007
Location: Liverpool, soon to be Hondon De Las Nieves
Posts: 238
Re: Setting up new family business
As an employer, you would be responsible for the bulk of your employees' national insurance payments, whether they're on a contract or fixed term employment.
A gestoria/asesor fiscal will be able to advise you on the most tax efficient way of operating such a family business.
A gestoria/asesor fiscal will be able to advise you on the most tax efficient way of operating such a family business.
