My partner and I are in the process of purchasing a holiday let business in Scotland, consisting of three lettable properties, a house for ourselves and some commercial agricultural land. This is part of a lifestyle, semi-retirement plan; both of us will eventually give up normal employed work.
We will negotiate the transfer of the goodwill aspects of the business over to ourselves, inclusing website,forward bookings etc.
My question is this; should we set-up ourselves up as a limited company, as a limited liability partnership, or use some other business structure? We will trade below the VAT threshold.
I'm interested in hearing how others have approached this question in similar circumstances. I have experience in running a limited company, but not a partnership, so would naturally gravitate towards that option. However is it simpler and cheaper to operate as an LLP? Any feedback appreciated.
Taking over a holiday let business
Chris,
Good luck with your new venture, we did this a year ago, but in the opposite direction (London > SW France).
A couple of things to note when “taking over websites”. This is fine if it’s the current owner’s website, you just need to take over the domain from the owner. Ask for a breakdown of the domain and hosting costs upfront.
Find out from the owner what rental platforms such as Airbnb and Booking.con the rental properties are listed on. If you want these transferred, the current owners have to contact the platforms directly to start this process.
Good luck with your new venture, we did this a year ago, but in the opposite direction (London > SW France).
A couple of things to note when “taking over websites”. This is fine if it’s the current owner’s website, you just need to take over the domain from the owner. Ask for a breakdown of the domain and hosting costs upfront.
Find out from the owner what rental platforms such as Airbnb and Booking.con the rental properties are listed on. If you want these transferred, the current owners have to contact the platforms directly to start this process.
Thanks for the responses. We will take legal advice, but I wanted to see if anyone out there has been in a similar situation and would be willing to share the their experience. We haven't yet entered into negotiations surrounding the goodwill element, so will find out out how the current owners have structured their business in due course.