Keeping profits in LTD company and commercial mortgages

T

Tom573

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I've been running a new business for c. 6 months now and I'm unsure about the best way to proceed when it comes to the end of the year. Each month I've taken out a reasonable salary to live off and save a small bit but it has been relatively small compared to what the company has been earning. I want to purchase a plot of land and develop a business premises on it within the next 1-2 years. Purchasing a suitable premises is not an option and the current premises we are leasing is becoming too small. Should I be taking out the dividends at the end of the year and building the premises personally and renting it (?) to the company or should I leave the money in the company to save for it, and pay CT (if any, as I believe we are not liable as we are a new company?).

Also, what is the criteria for commercial mortgages? The repayments on a potential mortgage would be very small compared to the turnover of the company. I was told that I would need to be in business for at least 3 years to borrow, which I will be at the time, and I may need to personally guarantee the mortgage myself, which I would be able to do.

Thanks.
 
Tom573 said:
Should I be taking out the dividends at the end of the year
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If you're asking a question as basic as this (answer: absolutely not if you're in Ireland and there's something peculiar about your circumstances), you badly need proper professional advice based on the specifics of your situation.
 
T McGibney said:
If you're asking a question as basic as this (answer: absolutely not if you're in Ireland and there's something peculiar about your circumstances), you badly need proper professional advice based on the specifics of your situation.
Click to expand...
Why is taking out dividends a bad idea? ( just trying to learn about this stuff)
 
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