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FitnessCrazy FitnessCrazy is offline
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Limited or Not??

Hey everyone.

I've been told by a few people that I should become a Limited company. However, I haven't really been convinced of the benefits for all the hassle that seems involved.

Is anyone here Ltd? What major benefits are there? Especially if I havent invested much into the business, and so even if things went wrong, people cant come after my posessions as its all my money thats invested.

Thanks in advance.

Deren
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openmind's Avatar openmind openmind is offline
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IMHO you should only become a LTD after you have been running as a sole trader for at least twelve months. Apart from the fact that there are tax advantages to incorporating after a year, you can show yourself that its worth by proving your business model works.

It's a hell of a lot easier to close a sole trader than a LTD

Speak to James Smith, www.jamesesmith.co.uk and he will provide you with friendly, down to earth and common sense advice about whether or not it's a good idea...
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FitnessCrazy FitnessCrazy is offline
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Thanks a lot for that, just what I wanted to know. Will contact James later today.

Thanks
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Play!! Play!! is offline
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Would I be right in saying the best benefits of being Ltd are the tax breaks and the knowledge that the businesses debts arn't your own, which might be a factor in taking bigger risks and in turn getting better returns. This has always confused me a little because my brain says a sole trader would want to pay their debts more than a director. A director of a Ltd company would keep anything in his name, if things went belly up, while a soletrader would be destroyed both in a business and personal sense. So why are you considered more trustful when you are a Ltd company?
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SBar SBar is offline
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You are in no way immune as a director of a limited company, you have responsibilities for various tasks to be carried out and for standards to be met and for all of these you will be personally responsible both financially and in any criminal terms.

One of the reasons that limited companies may be viewed as more 'trustful' or at least respected more is that it is a lot more involved, the fact that you are limited means you have things like an accountant and some understanding of the legal sides of business, it is also more likely that there is more than one of you.

Having said that there are industries which it may be more beneficial regarding how your customers see you for you to be a sole trader, i.e. so they know it's just a single person rather than some corporate entity.

Anyway thats just my ramblings on it, I *really* recommend reading all of the information on

http://www.businesslink.gov.uk/bdotg/action/home

'Starting Up' contains the specific information you are after but the whole set of information is worth the several hours reading.
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Play!! Play!! is offline
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Umm, being a sole trader doesn't mean that there is only one of you at all. I realise there are criminal implications but my point was the business is a seperate entity, meaning, the business is the one who is in debt, not the owner.

Those aren't even valid reasons. I have an accountant, an understanding of the legalities and there's more than one of me. I'm not Ltd.

Maybe I'm getting a bit aggressive because I've had a few and if that's the case I'll appologise now. Why have you put trustful in ''''' ?
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openmind's Avatar openmind openmind is offline
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I wouldn't have said being a LTD makes you more trustful than a sole trader but it does give the appearance of an established business.

Directors can be made completely liable for debts if they are required to act as a guarantor for loans etc.

At the end of the day, there are advantages and disadvantages to incorporating but that's where people like James come in to advise you correctly...
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SBar SBar is offline
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I was really meaning that sole traders were owned by a single person, sorry I rushed the post off a bit last night in between compiling!

As I said in the post those were just a few thoughts off the top of my head regarding Limited companies and I provided a link to a much more comprehensive resource.

I'm sure your accountant would be a good resource for this advice also.
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FitnessCrazy FitnessCrazy is offline
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Thanks for all that, I will read up on it. I just couldn't see much of a benefit for me to outweigh all the hassle - and yet people made it sound like its such a great idea to be Ltd. Will read up and have a chat with the accountant to see what he says.

Thanku
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natasha natasha is offline
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where is it you go if you want to look up ltd companies turnover?
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openmind's Avatar openmind openmind is offline
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Go here: http://www.companieshouse.gov.uk/WebCHeck/fastrack/ and then enter the company name.

Click the company name in the results and then the Order information link. You can then order various reports dependent on what details are available. Cost £1 each
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natasha natasha is offline
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Thank you Phil!

This is a subject that i haven't explored thoroughly, i think its a good idea for me to learn a bit more about the subject, so few more Q's if you dont mind
What does a company secretary do?
also can you have more than one company under the same LTD?
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openmind's Avatar openmind openmind is offline
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http://www.businesslink.gov.uk/bdotg...cId=1073887645

Pretty detailed description of a comp. sec. job...

With regards to more than one company, yes you can as that's actually what I do.

My company name is Open Minded Solutions Limited but I run Open Mind Hosting, Open Mind Media etc under that umbrella.

You have to make sure people know this though and on invoices still state the full company name, just add t/a and then the "sub-company" below.

It does make accounting a little more tricky as well...
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natasha natasha is offline
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Thank you once again Phil!

Fitness crazy have a look at this link http://www.businesslink.gov.uk/bdotg...axandreporting it asks you a series of questions and gives you can answer as to what type of company would be best for you!
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openmind's Avatar openmind openmind is offline
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I must admit, that Business Link is an absolute mine of information, well laid out too...
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