Been thinking about it… havent found much…
you know, incoproate the entire assets of all teh housholds under one family and using that to start a seriosu franchise, a small bank, etc.
thanks!
eb
There’s nothing to stop people, whether or not related to one another, from putting all their assets into a company which they own. and then running a business through that company, using the contributed assets as working capital.
'Course, if you put your house into a company, then you don’t have a house any more. You could contribute it to the company on terms that the company has to rent it back to you, but that gives the company an income stream, not a capital asset, which might not suit the company’s business plan. And lt leaves you paying rent for a house that you used to own outright. And, if the company’s business folds (as many startups do) you may find yourself paying rent for a house you used to own, and not having the satisfaction of knowing that the rent is supporting a business that you part-own. Or you may just find yourself evicted from the house you used to own.
And the same, more or less, goes for your car, your computer, your savings . . .
You get the point. It’s perfectly possible. It’s just a bit risky.
There are tax issues as well. Your house is your principal residence, and in most countries you get a capital gains tax break on that (i.e. you pay on tax on any gain in value on the house). Your company won’t get that break. So this is not necessarily the best way to capitalise your company.