Question on directors and what to call director-to-be!!

[PermaShattered]

Any accountant or company specialist out there who can help me please?! I'm setting up a company (freelance writing) and I was going to set it up with a friend. But after thinking long and hard about this - eg. my income far outweighs her's right now - we've decided I'm going to set it up in MY sole name and when our income starts to be similar (she's building up hers, but mine will drastically decrease as my 4th baby is imminent!), she'll then come on board as a co-director - maybe in a matter of just months.

In the meantime, we're setting up a website but this will be a showcase for both of us - it's just the company that will be in my name for financial reasons.

My big questions it this: what can she be called? She WAS going to be the Creative Director - and me the Editorial Director. But presumably the website can't name her as 'Director'.

What could be an alternative?

Thanks in advance! And hope that makes sense!!

Manager?
Advisor?
Director designate?
Partner?
Specialist?

A director is a legal entity. To be a proper limited company you have to have at least a managing director and a Company Secretary.

I think you are best starting off as a sole trader then perhaps moving into a Partnership.

I might be wrong - but can't anyone be called a 'director'. Not an equity director or voting rights director - just someone who 'directs' a dept/area.
dh is in the insurance industry and every man and his dog is called 'director' of something or other. Big titles but rather meaningless. So you could call her whatever you want.

You can be called Director without being a director in the legal sense, so you could call her Creative Director but just not have her registered t Companies House.

Incidentally a private company doesn't need a Company Secretary any more, you can set up with just one director.

The important thing to think about is shareholdings - perhaps the way to approach it is for you to own 100% of the shares to begin with and the you give her say 20% (or whatever you think is appropriate) down the line.

I didn't think a director was a legal entity? A company yes.

I'm setting up a company as it will be more tax efficient for me. TracyK that's interesting, I'll see if anyone else things this - it would certainly help if I can still call her a director! Will await further posts....!

Horses mouth
www.accountingweb.co.uk/item/195682
call her what ever you like

MarionCole and TalkinPeace2 a big thank you! The shareholdings has been the difficult thing hence deciding she will become a legal director further down the line when we can be far more sure of the right shareholding ratios.

Thanks again! And on that note, goodnight x

You can be a director without being a shareholder, and vice versa.

Lord Hanson was always the king of the shadow directors - the company was named after him when he was still disqualified and everything was in Lord White's name

Guys, another question but might start new thread if I don't get responses here.

When my company is set up and I'm VAT registered (which I'm going to do voluntarily) what's the best way in which to tell/advise/mention to my existing clients - who are all big companies and will be VAT registered themselves - that I'm now

a. VAT reg so will be charged VAT
b. now operating via my new company so invoicing will change etc?

Just want to make sure I'm doing it professionally! Thanks in advance....

Dear Big Company PLC

RE: Permashattered representing MyOwnCompany Limited

Please accept this letter as formal confirmation that from 11th March 2011, my business has incorporated and all invoices for work done will come from the company.
Please be reassured that all email and telephone numbers will still be checked during the switchover and all existing commitments will be met.

Please could you update your records as follows:

Permashattered is now a director of MyOwnCompany Ltd
Company Number 1234567
VAT registration Number GB 987 654 321

Bank details for bacs payments
Barsteward Bank Plc
sort code 66-66-66
a/c 98765432

New website www.MyOwnCompany.co.uk
{alias the old domain onto the new one for a year or two}
New email [email protected]
{use thunderbird or equivalent to scoop all addresses}

All other details remain unchanged, and I look forward to our excellent relationship continuing.

If you have any questions or concerns, please do not hesitate to get in touch

Yours Faithfully
Permashattered

That was pretty much what DH did when he incorporated a couple of years ago.
It worked.
Some of the letters went out with the invoices for stuff that was booked before and carried out after the switchover.

TalkinPeace2 you are a star, thanks SO much! Whereabouts are you based?! Your advise has been so helpful throughout. I'm getting there now with it, thanks again! x

I'm in Southampton.
Happy to help.
It's nice to find a repeat use for some of the info in my head!