Sam
Moderator Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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I am starting a new (second) business, which I anticipate will make shitloads more money than web design (well I've proven this to myself anyway from various contracts I've had recently).
What I want to know is, is it best to start up as a sole trader then incorporate, or should I incorporate now?
I had a meeting with the bank today to sort my new account out and they reckon I should speak to an accountant about this considering Business Link etc. are next to useless.
I keep hearing conflicting information off different people and it's doing my head in
[Edited on 14-10-2010 by Sam]
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
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LTD all the way.
A LTD co is treated as its own entity so its easier to bin off if shit goes pear shaped etc.
Plus in my opinion your taken more seriously being LTD
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Ste
Premium Member
Registered: 5th Mar 03
Location: Taif, Saudi Arabia
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Keep it off the books and away from the tax mans eyes tbh
I would rather lose by a mile because i built my own car, than win by an inch because someone else built it for me.
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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Plus you can pay Dividens from a LTD and claim back directors loans etc
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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What is said business if you dont mind my asking
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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Stay sole trader untill you think it'll take off imo.
Will take a 5 minute meeting in the bank to change it to LTD etc.
I'm sole trader in 1 business and ltd 2.
[Edited on 14-10-2010 by Whittie]
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Sam
Moderator Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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IT maintenance (used to do it years back as full time jobs, and have done it part time alongside my existing web design business).
I assume if say for example I wanted to get a mortgage (for a house) I could say I am an employee of <whatever> Ltd and that I'd be looked upon better than as a sole trader?
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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quote: Originally posted by Sam
IT maintenance (used to do it years back as full time jobs, and have done it part time alongside my existing web design business).
I assume if say for example I wanted to get a mortgage (for a house) I could say I am an employee of <whatever> Ltd and that I'd be looked upon better than as a sole trader?
Exactly.
Sole traders are frowned upon financially (getting credit, even insurance etc)
If you go for a personal loan you dont need to mention you own shares in the company. And technicall as a LTD co is its own thing you are an employee only. You just happen to own 100% shares
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Sam
Moderator Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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I need to open up trade accounts with IT suppliers (not bothered about it being cash or 30 day) but all of them have said to me they aren't interested unless I'm a Ltd company.
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Hammer
Member
Registered: 11th Feb 04
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From an accounting perspective sole trader until such times as you're making decent money.
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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quote: Originally posted by Hammer
From an accounting perspective sole trader until such times as you're making decent money.
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Sam
Moderator Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
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I think for the reasons of opening accounts with companies and my own personal financial standing I might be forced to open a Ltd company. Hmmm...
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jrsteeve
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Registered: 3rd Apr 02
Location: Manchester
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Depends on the expected turnover and possible risk. Either can be made to suit but sole trader costs less initially, but if you fuck up you'll be sued rather than the company.
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M2RTY
Member
Registered: 25th May 01
User status: Offline
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IT contractors who work for me are LTD
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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Also if your credit is shite you'll have sod all chance of a loan. With LTD it dnt matter as much
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Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
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quote: Originally posted by glb
Also if your credit is shite you'll have sod all chance of a loan. With LTD it dnt matter as much
If your credit history is shite. Then you stand absolutely no different to getting a loand, ltd or ST.
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Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
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Personally obv. But business wise it makes a difference.
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Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
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I'd go sole trader till it takes off.
Have a look on uk business forum. There's a sticky thread about a million pages long about this
Adult GiftsClick here to vist us
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VrsTurbo
Premium Member
Registered: 8th Jun 10
User status: Offline
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quote: Originally posted by Hammer
From an accounting perspective sole trader until such times as you're making decent money.
What would you say is decent money? I have a contract coming up next year for around the 25k mark should i go LTD or soletrader?
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