I have a company in which me nand my wife out in £50 each for 100 £1 shares shares.
I now want to put more money in as equity. We now want to fund the business with a further £10,000, We have two options:
1, We issue another 10,000 £1 shares
2. Or we issue (say) 100 £1 shares but pay £100 per share.
The end result is the same - my question is - does it matter? I understand that the accounting will be different (one will be share capital while the other will be share capital + share premium account).
But practically (tax for example), does it make any difference?
Thanks.
I now want to put more money in as equity. We now want to fund the business with a further £10,000, We have two options:
1, We issue another 10,000 £1 shares
2. Or we issue (say) 100 £1 shares but pay £100 per share.
The end result is the same - my question is - does it matter? I understand that the accounting will be different (one will be share capital while the other will be share capital + share premium account).
But practically (tax for example), does it make any difference?
Thanks.