Is there anyone out there whom best knows all about the difference between becoming a LLP vs becoming a Limited Company for their BTL portfolio as i am a sole landlord owning a few properties in my own name.
My long term objectives are to own as much as i can own using mortgages and rent them out down south, mainly looking towards capital growth more so than looking for a rental income however a bit of both is always welcomed.
I presently have enough money to buy about another 3 houses on mortgages and by the time I’ve done that i should have something else where to re-mortgage and continue the process whilst living off of the business as much as possible - self management too including doing my own DIY for smaller repairs.
I understand that i could open a ltd company and me and the ltd company could then become a LLP and from there the LLP might also be able to become a ltd company after a couple of yrs without CGT & stamp duty etc however as a long term goal i really cant formulate if the end goal should be a LLP or a Ltd company and there doesn’t seem to much online about it.
My feeling is so far is that i should buy in my name now, then open a ltd company and become a LLP and stay that way but i dont know for sure as i want to go about it all correct from the outset with a informed choice of direction but i have far too many questions still unanswered.
1 of the questions is a tax comparison between LLP & ltd company for instance.
another question is, if i set up a LLP as suggested then does the ltd company then become classed as trading.
Also when the LLP allocates funds/money/earning to the ltd company does the ltd company need to pay corporation tax on and what about the LLP and me as a human?
If anyone has good experience in this sector it would be most appreciated if you could provide any advise on the matter.
I presently use a chartered Accountant whom knows nothing about property yet he is a good reliable trust worth accountant in all other ways who I’ve used for well over a decade but doesn’t have any property advise etc and i went to landlords4tax and they wanted about £25k plus to tell me this stuff which seems outrageously ridicules to be charging as its bad enough anyone has to pay tax to the corrupt tax man in the first place, let alone to then not be given clear rules in layman’s terms for those paying to at least understand the rules prior to playing the game if you know what i mean.
Thanks in advance.