Hello,

Me and a business partner have just recently formed a new limited company up,

i'm in the process of making an online application for a business bank account,

it ask's for my trading address but due to me and my partner in different citys, both working from home

which would be classed as a trading address?

We have also a registered address in london which is on companies house

can anyone shed a little light on which address we can call our trading address?

ask the bank which address they want.

the address they will want is the one to send the bank statements, etc to you. As a registered office address will not, unless you have paid extra for it, forward on any mail except for Companies House and HMRC related to the Ltd Co. So just give them one of your addresses, whoever will be the likely person to be doing the admin side of things, whover is keeping hold of all the accounts paperwork, etc. The same will apply to HMRC address for correspondence, and others. Choose one as your trading address and stick with it for everything. The registered office address is not necessarily your trading address, and you can also make the reg office address your home address if you want to, keeps it all the same then.

Just pick an address and remember to collect the letters. I would advise a game of rock-paper-scissors to settle any 50:50 disputes like this (your address or you partners). It saves valuable time and adds i little fun to the decision making process.

are you going to be equal shareholders?

We have paid extra for a registered addresss, as we want to keep our home addresses out of the limelight, we haven't paid extra for mail forwarding, would the bank take this as our address if we pay extra for mail forwarding?

yes we are equal shareholders

You will need a trading address - HMRC require one if you do not operate from the registered office. It does not actually mean anything but if you do not have a used address how will anyone know how to contact you, send you cheques etc. I would use the person who is going to do most of the administering.

I would advise a game of rock-paper-scissors to settle any 50:50 disputes like this (your address or you partners). It saves valuable time and adds i little fun to the decision making process.

I would recommend getting a properly drafted shareholder agreement. Remember that nearly half of all marriages end in divorce so what rate of business partnerships fail. I know that I have seen many business partnerships end - Just think of the shareholder agreement as a prenupt.

The amount of partnership type businesses (regardless of formal status) is very high indeed in the first 3 years. You usually find the person who had the idea in the first place, is the one to carry it on alone after a split.

Where would you get a drafted shareholder agreement and what would this consist of? we've worked together for 6 years as freelancers for designing, and have been best of friends since we was 5 years old, and we are both 23 now, haven't really had any disagreements at all.

The amount of partnership type businesses (regardless of formal status) is very high indeed in the first 3 years. You usually find the person who had the idea in the first place, is the one to carry it on alone after a split.

as i just wrote above, we've been best of friends for years and worked together 6 years freelancing, and we are both putting in alot of money to finance the business, which has a 400% first year turnover projected of our initial investment.

don't want to give too much of the business away. :)

We want to be sure everything is done the proper and legal way, so we don't hit any hurdles or get burned.

I would advise you go and see an accountant and they can advise on your share agreement. The other thing to consider is, not if you have a fall out, but if anything happened to one of you. You want to know that you each have the option of buying the other one's shares rather in the event of various situations cropping up, including death.

Yes, we are looking for an accountant at the moment, thank you for your help! much appreciated.

I would advise you go and see an accountant and they can advise on your share agreement. The other thing to consider is, not if you have a fall out, but if anything happened to one of you. You want to know that you each have the option of buying the other one's shares rather in the event of various situations cropping up, including death.

As an accountant I would advise you to see a solicitor to see that any shareholder agreement it is correctly drafted.

You would have probably been better off seeing an accountant to ensure that the company was formed in the most tax efficient way and should see one to ensure that going forward you comply with the Companies Act and tax rules and extract your money in the most tax efficient way as well as getting good quality business advise.

Where would you get a drafted shareholder agreement and what would this consist of? we've worked together for 6 years as freelancers for designing, and have been best of friends since we was 5 years old, and we are both 23 now, haven't really had any disagreements at all.

What sort of Design do you do?

What sort of Design do you do?

Web design, but more graphics side of web design, but the business we are going into will stop all the hard work and much much more lucrative.