Joint activity

My client Mr A trades through a limited company. At a recent meeting he mentioned that he was thinking of developing a new product in conjunction with an acquaintance of his who is in a related business and who also trades through a limited company. It seems at this stage that this is something of a speculative venture and is one of those things that could (perhaps the most likely scenario) end up costing them a fair amount of money with no tangible result at the end of it. However if they can solve the technical problems (unlikely but possible) the alternative scenario is that it is successful and makes them both a considerable amount of money. The question is the trading format that should be used. My first thought was that they should set up a separate company in which they each...