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snatton
23-09-2004, 03:47 PM
Hi,

I currently in the process of setting up my own company. At the moment I dont need any employee's and also the setting up only requires an investment of £7,000.
My question is would it be worth setting up a ltd company and dealing with all the extra admin that comes with it, or just set up as a sole trader (apparently this is a lot easier). I would like the benefits of a ltd company for tax purposes but i just dont know if I could manage to run the company and do all the work single handedly. Help please........

Eagle
23-09-2004, 05:53 PM
Why not start up as a sole trader and test the water? If, after a while, you feel it's going well and want to go for the Company side of things then you can cross that bridge when you come to it.

Don't beat yourself up over this...just take small steps! :)

James Smith
24-09-2004, 09:43 AM
There is a lot to be said for Eagles approach, a sole trader can be useful for testing the business plan before

In terms of the paper work for running a small limited company, this can actually be entirely outsourced if required so you donít actually have to deal with it if you donít want to.

There is a rough table showing the minimum impact of the tax breaks on limited companies on my website here:

www.jamesesmith.co.uk/budget2004.htm

At profits approaching £20k or so it is certainly worthwhile even if you outsourced everything. With you initial investment it may well be that the actual tax bills in earlier years will be lower than my table suggests due to a few niggles in how the tax is computed enabling you to keep the bill down in the first couple of years.

If you need some specific help them please let me know. There are some good guides on this site and on the business link site about running limited companies.

Regards

snatton
24-09-2004, 03:19 PM
Thanks for the replies and info. At the moment I actually work in tax so I have a good idea of how the system works, all above board of course. I'm expecting profits for the first year to be roughly in the region of 8-10k, the year after would be more like 25k if everything goes to plan (ha).

snatton