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Setting up a Limited company as single person, help?
Comments
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My comments are based on my having been an estate agent and in latter years with significant time spent handling small business sales. Many buying small businesses were told by their brother/neighbour/pal at work/etc go Ltd it will save a lot in tax and you are shielded from problems and debts.
The tax saving may of been the case some years ago but not so in more recent years. I told people to talk to an accountant and after which nearly all dropped the idea of Ltd Co.
The position may be different one year on but as far as I am aware it is still as it was when I last traded. Ltd does involve more paperwork for the owner of the company and does incur a higher accountants bill.
Of course there is also the problems of 'corporate responsibility' and directors sometimes being held personally liable in certain situations.
As a small business he only does abbreviated accounts every year himself, runs his own payroll etc and had never found that a problem - once a year he'll have an accountant look over his books for him to make sure everything is in order and he is claiming for all he should be.
Sou0 -
Of course there is also the problems of 'corporate responsibility' and directors sometimes being held personally liable in certain situations.
As a small business he only does abbreviated accounts every year himself, runs his own payroll etc and had never found that a problem - once a year he'll have an accountant look over his books for him to make sure everything is in order and he is claiming for all he should be.
Sou
As others have said get an accountant. Even though I was in the middle of this type of thing every day I pushed people to seek the right professional help for their position.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
hi dont know how much this will help but a LTD company is easier to market than being just a sole trader, speak to an accountant, hmrc website and check starting a business for dummies book @ local library, am doing that myself.0
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MrYogiBear wrote: »hi dont know how much this will help but a LTD company is easier to market than being just a sole trader
I would be interested in knowing why you feel this?A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
I am interested too. Ive never had a problem marketing and Ive been self employed for many years.0
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As others have said get an accountant. Even though I was in the middle of this type of thing every day I pushed people to seek the right professional help for their position.
I think it's about knowing what you are capable of - why pay someone money for something you can do yourself - conversely don't try and save money if you can't do it and at the least will have to pay someone if you make a big mess.
As a general comment there are pros and cons to both decisions to go Ltd or self employed. I'd be very suspicious if I asked for impartial advice from someone and they pushed for one in particular.
Sou0 -
I think it's about knowing what you are capable of - why pay someone money for something you can do yourself - conversely don't try and save money if you can't do it and at the least will have to pay someone if you make a big mess.
As a general comment there are pros and cons to both decisions to go Ltd or self employed. I'd be very suspicious if I asked for impartial advice from someone and they pushed for one in particular.
Sou
I have always taken trouble to get the right accountant for my business and NEVER felt they had an ulterior motive in the advice they gave. I repeat NEVER. But I always met with several before deciding which one suited my requirements.
Many people with who I have dealt with have tried to do the book keeping themselves or used a part time book keeper where I have seen them having to, last minute, get professional help as they had messed it up.
You sound very wary about taking the advice which could be based on past experiences but I have dealt with accountants regularly in my working life and whilst there have ben the odd dodgy one I felt the rest had high levels of integrity.
I have helped many set up their businesses and many who went into a business for the first time. So the day to day reality for me differs from your point of view.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
You sound very wary about taking the advice which could be based on past experiences but I have dealt with accountants regularly in my working life and whilst there have ben the odd dodgy one I felt the rest had high levels of integrity.
Actually I am wary about paying people do things that I am more than capable of doing myself.
I am also very wary of doing things that I don't understand properly and then I pass it onto someone who has the correct skills for the job.
I hope that's a bit more clear?
Sou0 -
Actually I am wary about paying people do things that I am more than capable of doing myself.
I am also very wary of doing things that I don't understand properly and then I pass it onto someone who has the correct skills for the job.
I hope that's a bit more clear?
Sou
Yes but I was surprised at your comments:
"I'd be very suspicious if I asked for impartial advice from someone and they pushed for one in particular".
Accountants just tell you what would be best for you. In most cases it is obvious but some are more borderline so they lay out the options for you their client to choose.A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.0 -
Yes but I was surprised at your comments:
"I'd be very suspicious if I asked for impartial advice from someone and they pushed for one in particular".
Accountants just tell you what would be best for you. In most cases it is obvious but some are more borderline so they lay out the options for you their client to choose.
Ohh I'm sorry - that was a general comment about the pros and cons of a ltd co to the op.
There are some benefits and there are some disadvantages of being a Ltd - likewise to being self employed - I didn't want him to think I was somehow saying that being ltd was the bees knees
Edited to add - even that isn't very clear, I was trying to say that internet advice is not necessarily impartial and be don't assume it is - hope that makes more sense - the original sentence was very poorly worded
Sou0
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