How straightforward is it to start a company whilst under an IVA? The funding would be via crowd funding and an investor. I've been led to believe that I'd need to be a Ltd company, as a sole trader any profit would need to go to my IVA. Is this a possibility? I'm a bit concerned with bank accounts, but hopefully I could do this under an investor because I couldn't run it out of my bank account, it'd be too complicated. I'd still be employed and doing it alongside. Does anyone have any advice?
You can start a Ltd Company and it's finances would be it's own. However the books would be scrutinised by your IP and you would only be allowed to re-invest a nominal amount of "working capital". You will not be allowed to squirrel away money in the company coffers while you draw a meagre dividend, so, in the same way as if you were a sole trader, profits would still go toward the IVA payment.
If you get an off the shelf company the Articles will, most likely, prohibit directors being in debt solutions, but this can easily be remedied by a resolution.
If the company needs credit you, as a director could be credit checked, which will fail, or you could be asked to give a personal guarantee, which you cannot do -- so no credit facilities.
As you rightly say, a bank account could be problematic, but not impossible.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014 http://foggy.blogs.iva.co.uk
Thankyou, that's really helpful. So I need to speak to my IP first, and re read the terms of the contract.
The plan was to find the opening of the business using crowd fund, since it offers opportunities for the community. I was also worried that this would be seen as personal income but obviously it wouldn't be, as it would belong to the business. I'm starting to wonder if I would be better trying to get an investor/partner to avoid these pitfalls.