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Few noob questions about starting Limited Company accounts

Hello,

I hope you can help me how to start my account with me “brand new” limited company in a quick file.
First thing first:

We are a limited company with two people with significant control over the company (shares 50/50 £1 each).
How should I start “journey” by recording our shares?
Can you show me how it should look like on the screenshot for example (both shares of £1 was paid to company account already)?

Second question:
There is no profits yet but I have ordered a few marketing materials like business cards etc. using my private funds. How should I record it to company’s expenses?

Thank you in advance.
Gracjan

To answer your second question, you need to set up a Director’s Loan account for each of you.

Purchases you make from private funds will be paid from the relevant director’s loan account, which will then mean the company owes you money. When the company starts making profits you can take money back out of the business to repay the directors loan with no tax implications - as long as you leave enough money in the company to cover the corporation tax liabilities and other bills. (Just make sure you don’t end up with the directors loan in credit as it means you owe the company money, and there are some serious tax implications for this if you let it go on too long).

1 Like

Thank you @tellytart.
Any ideas about my first question?

Have you checked the KB article on this? If you do a search on the forum there are quite few posts on initial shares already, maybe one of those will have an answer?

@Lurch, yes but it’s not clear enough for me.
I found it a bit complicated.
I wouldn’t ask you if I have the answer.

@Digital_Advisers, to record the shares credit the shares paid account with £1 and debit the directors loan account (DLA) of £1. Repeat this for both shares or you could set up a petty cash with the £1 balance posted to there instead of the DLA.
I hope this helps :slight_smile:

@Digital_Advisers, sorry just reread your post, post £50 not £1, then repeat.