How would assign a monetary value to this company?

[R.Oak]

Maybe he should go 'Limited' if hes not already, name you as a director and he draws a set wage every month as a silent shareholder. You obviously draw a wage as well. Then it is in both of your best interests that the company continues to grow and succeed.

His income could even be a wage for continuing to run the administrative side of the business leaving you to concentrate on the labour side.

Then after x amount of time you can buy his portion of shares for an agreed amount and the business is legally yours. Checkatrade will be covered. You've had a nice long handover/learning period and you've both had income from the business.

 

[cr0ft]

2 questions here really.

1.) Is it morally right. I don't think so myself, not without you being a director of the company the Checkatrade account is registered to.

2.) Will the account be worth anything? You bet your bottom dollar it will. Our account with 180 something feedback keeps me and 3 full time staff busy to be honest. 600 will be better than that.

 

[WaterTight]

Ok so I've found out he is a limited company and he's offering me to be a "named partner (co-owner)"

Is that the same as director? Or is it fob off which doesn't satisfy the issues mentioned in two above posts?

Thanks

 

[Gray0689]

Ok so I've found out he is a limited company and he's offering me to be a "named partner (co-owner)"

Is that the same as director? Or is it fob off which doesn't satisfy the issues mentioned in two above posts?

Thanks

Yes you will be a director

 

[WaterTight]

So why does my being a director negate any ethical concerns for everyone? I'm happy that it does but it confuses me since it doesn't change the fact it's not my feedback (save for 30 odd here and there)

 

[Stanios]

I think weekly payment is the way forward, I wouldn't worry about partnering or what not, its like those tax heavens set up to "trade in dollar currencies". Its set up ultimately to pay less tax, so lets cut the crap here mr C.

I would negotiate for him to pay membership fee though since its annual and you might want to pull out any time.

 

[markfxy]

I think £83 is on the steep side but one job a week would cover it, Checkatrade won't have any problems your just carrying out his work as a subby, anyway they're not bothered they just want your money they're no different to any of the other parastic tradespersons websites,
thing is this only seems to be a short term thing you'd be better off keeping your checkatrade site going and spending money on your own website

 

[Ray Stafford]

What if you get found out by Checkatrade

Ok so I've found out he is a limited company and he's offering me to be a "named partner (co-owner)"

Is that the same as director? Or is it fob off which doesn't satisfy the issues mentioned in two above posts?

Thanks

Sounds odd to me. Limited companies have directors. Partnerships have partners.

But its easily checked. Just ask for his company registered number, then its a piece of cake to look up on line.

However, be careful of directorships of limited companies. Once you are a director, you are responsible for just about everything, and its no defence to argue that you didn't know what other directors or employees were up to. The law assumes that you do know. Also, remember that the shareholders can vote you out of office just as soon as you can type "Extraordinary general meeting".

There is a legal form for business called "limited liability partnerships" - abbreviated to LLP. I have only ever seen this used by solicitors, accountants and that sort of business, so I am a bit uncertain of how they work, but have never come across a plumbing or building firm using that legal set up.

 

[Ray Stafford]

What if you get found out by Checkatrade

Checkatrade won't have any problems your just carrying out his work as a subby

If you supply the quote on your letterhead, and they pay you, then the contract is between them and you, regardless of who the checkatrade account is registered to.

If your mate supplies the quote, and they pay him and then he pays you - thats subbying.

 

[markfxy]

Your right Ray I stand corrected:sad: still say ceckatrade won't give a monkeys as long as they get their money they won't give a toss, unless they've changed since I was with them!

 

[WaterTight]

However, be careful of directorships of limited companies. Once you are a director, you are responsible for just about everything, and its no defence to argue that you didn't know what other directors or employees were up to. The law assumes that you do know. Also, remember that the shareholders can vote you out of office just as soon as you can type "Extraordinary general meeting".

Thanks for your input Ray, I was hoping you'd put in your two penneth.

Ok, so it looks like he is wanting to retire from the tools side but keep working on growing the business and even has hopes (athough i must say he has had hopes of this nature for about 7 years since i first met him, which haven't materialised, he is clever and ambitious and determined but for one reason or another nothing has come of it) to end up with staff.

This presumably just serves to complicate my situation. And presumably makes my position - whatever it would be - even more important to get clearl in legal terms so any work I was to put in wouldn't come to nothing if I were to be easily brushed aside in future. And, conversely, that I wouldn't find myself responsible for any problems that occur with any number of random expansions/morphings I wasn't behind.

All I want to do is get his checkatrade calls, which he is willing to sell me. But since he will be still around doing "business and marketing" and probably the odd job here and there I'm not sure if I can find a way to have a legal right over the thing I am buying and not also end up responsible for whatever ventures he has planned...

 

[woodsy]

Sorry to be negative but this whole thing sounds a recipe for disaster. He's continuing to trade, your effectively paying his checkatrade fees plus extra and he gets to chose any ' easy' jobs he fancies and pass what he doesn't to you. Sounds like a falling out in the not too distant future is on the cards.

 

[julesverne]

Thanks for your input Ray, I was hoping you'd put in your two penneth.

Ok, so it looks like he is wanting to retire from the tools side but keep working on growing the business and even has hopes (athough i must say he has had hopes of this nature for about 7 years since i first met him, which haven't materialised, he is clever and ambitious and determined but for one reason or another nothing has come of it) to end up with staff.

This presumably just serves to complicate my situation. And presumably makes my position - whatever it would be - even more important to get clearl in legal terms so any work I was to put in wouldn't come to nothing if I were to be easily brushed aside in future. And, conversely, that I wouldn't find myself responsible for any problems that occur with any number of random expansions/morphings I wasn't behind.

All I want to do is get his checkatrade calls, which he is willing to sell me. But since he will be still around doing "business and marketing" and probably the odd job here and there I'm not sure if I can find a way to have a legal right over the thing I am buying and not also end up responsible for whatever ventures he has planned...

After reading this id be more inclined to give it a wide berth. This will probabably only lead to issues and arguments a year or 2 down the line