director loan question in new business

[steebo888]

hello there

im starting a new business which will be a ltd company with 28k of my own money.

Am i right in saying the 28k can be put down as a directors loan into the company and if i draw out against this then there will be no tax implications?

also how long can the loan last for?

cheers

[steebo888]

cheers

forgot to say that 23k is to buy the business and 5k for working capital and solicitors fees

is all 28k still ok as director loan?

[steebo888]

PurpleMoonlight said:

You will need to explain how you are structuring these.

Are you buying the Ltd shares of the existing business?

If not, are you establishing a new Ltd which will then be purchasing the trade and assets from the extsting business?

If so, is the money you are putting into your Ltd purchasing shares or deemed a loan?

Hi

buying an existing sole trader business and creating a new ltd company.

23k is for the purchase or the lease (2k towards equipment)

5k for sols fees and operating cash

i will be only director and i think shares will be set at £100 total