Should we set up as a business?

If you are planning to buy a rental home, or you're thinking about what to do with one you have just acquired, this is the place for any questions about starting out in the rentals business.
andrew
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Should we set up as a business?

Post by andrew »

My brother-in-law and I are building in the Dordogne and will be renting from next year.
Can anybody suggest what we should do regarding managing the finances. Is it best to set up a company in the UK (or possibly in France) or just to take the income and declare it that way to the taxman.
I'm really ignorant of such matters but a friend suggested we should set up a company as things would be easier to manage. Any suggestions would be much appreciatted - we've got approx. 10 months before we're up and running but the clocks ticking and we've got to start organising.......!
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thisfrenchlife
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Post by thisfrenchlife »

Hi Andrew

Much will depend on where you will be living, I'm not sure from your post if you will be full-time in France.

If this is the case then you will come under the French tax regime.

The Dordogne tax office are rolling out the red carpet to English speakers at the moment with staff able to help out.

The main office in Perigueux is most probably the best place to check first, more at:
http://www.dordogne.pref.gouv.fr/

Hope this helps.

Regards

Craig
andrew
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Joined: Sat May 20, 2006 4:44 pm
Location: Dordogne
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Post by andrew »

Craig

Thanks for the information.
We're still going to be residing in the UK and letting the property during the summer months.

Interested in how both the French govt will view the rental and the implications at home regarding any hoped for profit.

Regards
cromercrabholiday
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Post by cromercrabholiday »

I don't feel that a company in the UK would be of any benefit. I have to run a company for my work and I'm an accountant by trade, so I can do it myself; there is a bit of paperwork and cost involved and you might have to employ some help if you have no experience. Jane runs the cottage as a sole trader. Have no idea of French rules.

I would recommend keeping a separate bank account that all your income and costs go through and keeping all your receipts. You need to work these into an income statement that you include as part of your tax return. Which tax return? Don't know, but I'm sure that others in the forum will.

Best of luck

John
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