Question: I'm starting a business from scratch, is it prudent to go straight to being a limited liability company?
Question: I am currently running my business as a sole trader business but I am looking to convert it to a limited company. What tax implications would this have?
This is a complex question with two parts.
In respect of the investors – only UK tax resident investors are eligible to claim EIS or SEIS income tax relief. If your non-UK investors do not suffer any UK income tax, then no relief is available. This may solve the problem in the first instance – no UK income tax, no SEIS or EIS tax relief is available.