Coffee Company

I am planning to start a Ltd Company, and I plan to put a substantial amount of savings into it, as initial capital. Would this be see by the taxman, as income coming into the business, and so be taxed?

Start-up capital is not taxable. This should be shown on the balance sheet.

Debit: Bank
Credit: Share Capital

Only a profit is taxable.

3 Responses

1. Fantasiesbymel Says:
   April 6th, 2010 at 7:38 pm

   I did the same thing in an LLC (Fairy Arts LLC) and yes I had to report it.
   References :

2. truecockney Says:
   April 6th, 2010 at 7:44 pm

   Start-up capital is not taxable. This should be shown on the balance sheet.

   Debit: Bank
   Credit: Share Capital

   Only a profit is taxable.
   References :

3. Russ Says:
   April 6th, 2010 at 7:52 pm

   Any money put into a company by shareholders is considered as capital and therefore not subject to tax, however, when this money is withdrawn, e.g. sales of shares, a potential capital gains tax situation arises
   References :

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