Business Loan Query

[NameChangedForThisQuery]

Not sure if posting in the right place..

In need of some advice. I am going to see an accountant, however I'd like some input from someone who is in the know before I pursue any further. Basically I currently work somewhere and myself and my partner of 9 years are wanting to buy the business. It is being valued tomorrow so we can see where we stand with figures.

I work part time, have never had a credit card or loan so don't really have a credit history and my credit rating isn't the best because of this. My partner has never missed a mortgage payment and has a very good credit rating. It would need to be him that got the business loan if we were to pursue this, but what I am wanting to know is would the business then be soley in his name, even though it is me running it and how would this affect his tax?

Hope this makes sense..

That depends on the business set up. Do you intend to be partners or a limited company?

It is a limited company and I intend to be the sole director. Sorry I forgot to mention that bit, you'll have to excuse me I'm new to all of this. It is an existing company, a limited company currently under a sole director and one secretary. I plan to be the sole director, and appoint a secretary.

Putting the loan issue to one side, think VERY carefully about buying the existing limited company - you need to get your solicitor and accountant to do a proper "due diligence" if you go down that route. The thing is you take over the company, warts n all, including any debts of the existing company, such as past taxes, loans, debts to suppliers etc. Not a good idea. Usually, you'd set up your own limited company and your limited company would buy the business from the existing limited company, leaving the existing company a shell owned by the existing director/shareholder. You'd set up new tax registrations for VAT, PAYE, corporation tax so any prior debts etc would stay with the current owner and not be adopted by you! Don't move forward until you fully understand the difference.