Ltd company question

simpywimpy

We have a Ltd company that is running fine and we have an accountant to do all the returns etc, however if we were to set up a second shop, how could we run it under this Ltd company umbrella but not lose the first shop if the second didn't work?

Is it possible to do this or am I barking up the wrong tree

I want both shops under the same company but without risking one against the other.

simpywimpy

can anyone offer any help on this query or point me in the right direction to finding out please?

Savvy_Sue

the obvious answer is to wait until morning and ask your accountant, who knows your business better than we do, but I held off from posting that earlier in case anyone was able to be more helpful.

To be honest, I don't think this will be possible, but that's from a 'common sense' approach rather than an informed one ...

paulwf

Could you set it up as a separate limited company? If not you're probably best off minimising the risk...get a full survey done, make sure a break clause is included etc.

Why do you think a second shop won't work if you already have a successful one? For some businesses it works as you have more buying and advertising power, for other shops it is disastrous as they are built around 1 or 2 key people who can't be in 2 places at once.

Premier_2

Unless the shops are run as two separate businesses (limited compnaies) then the downfall of one could lead to an adverse affect on the other.

Speak to your accountant who will either advise you set them up and run them as two separate companies (with twice the overheads) or show you how to manage your accounts so that you can react quickly to any financial problems. Just because one shop fails doesn't mean the other will have to close, unless you allow the situation to get out of hand and creditors force you to dispose of assets to pay them.

simpywimpy

Im really looking at the best way to expand without increasing any personal liability but if the expansion doesn't work for some reason (which there is no guarantee in the current climate however good the idea/plan) I don't want to risk the current business or to have all the financial loss personally. I guess I'm looking for an idea no risk scenario lol