Safeguarding personal assets
MikeB
Registered Posts: 1
Hi
I have just acquired two clients (a wife and husband partnership) who joined the pub trade 15 months ago. They took an unsecured loan to obtain the business, repayable over 5 years, and have bought into a 9yr tenancy agreement to rent the pub. The repayments on these 2 fixed overheads forms a major part of their monthly outgoings. They rent out their mortgaged 'home' and intend returning to it when their pub tenure finishes. The cost of the mortgage is covered by their rental income.
I received an email this morning from one of the partners expressing a concern that if the pub business fails would they be in jeopardy of loosing their house, AND would 'changing' to a Ltd company (or LLP) help prevent this? Their trade is seasonal and takings are 'significantly reduced' compared with the same period last year. Cash flow is a problem and they are struggling to cover expenses.
Your constructive thoughts on this situation would be greatly appreciated and any contributions 'outside the box', that may help clarify my thinking, would be much appreciated too!
Thanks
MikeB
I have just acquired two clients (a wife and husband partnership) who joined the pub trade 15 months ago. They took an unsecured loan to obtain the business, repayable over 5 years, and have bought into a 9yr tenancy agreement to rent the pub. The repayments on these 2 fixed overheads forms a major part of their monthly outgoings. They rent out their mortgaged 'home' and intend returning to it when their pub tenure finishes. The cost of the mortgage is covered by their rental income.
I received an email this morning from one of the partners expressing a concern that if the pub business fails would they be in jeopardy of loosing their house, AND would 'changing' to a Ltd company (or LLP) help prevent this? Their trade is seasonal and takings are 'significantly reduced' compared with the same period last year. Cash flow is a problem and they are struggling to cover expenses.
Your constructive thoughts on this situation would be greatly appreciated and any contributions 'outside the box', that may help clarify my thinking, would be much appreciated too!
Thanks
MikeB
0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership