Setting up a Co. for investing.

I

Itchy

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Apologies if the answer to this question is elsewhere but I cant find it.
If I had 1 million to invest in a mixture of funds, property equity etc. would it be advantageous to set up a company?
What would the implications be if I loaned the company the million with the intention that the company would use it to make the investments?

I understand that there are considerable legal and accounting obligations to running a company I just wonder is it worth ? I would like to make it a full time job for myself and get an income from it .

Any thoughts?

Itchey's Mum
 
Forget about legal and accounting implications for a second and look at the tax implications.

Any profits you make from trading/investing through a company will effectively be taxed twice in most situations that I am aware of-they will be taxed as profits in the company and then you will be taxed on receipt of dividends or salary when you extract money from the company. There are also close company provisions specifically applicable to investment companies that may also be relevant.

But if you are considering investing as a full time occupation, the 'sole trader v. limited company' issue may be worth teasing out in more detail. I strongly suggest that you contact a tax professional to discuss this in more detail if you are serious about persuing this as a full-time venture.

FWIW, the setting up a company to invest in property is a Key Post in the Property Investment forum.
 
Thanks for that I will talk to a professional but just to be as knowledge as possible brfore ..
What are your thoughts on loaning the company money and taking out some of that money as loan repayments at intervals instead of dividend or salary. Any money the company makes can be reinvested?
 
Thanks I have talked to my accountant and he confirms that there is nothing to be gained by setting up a company.

Itchy's Mum
 
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