Setting up limited company

the_matrix

With your help can I get this right please.

I was thinking limited company as if things don't go well I won't be left with huge debts.

1. I have business plan.
2. I set up limited company. Can I do this myself or do I need an accountant? How many people need to directors?
3. I've found a suitable office. The rent is fully serviced. I'll be going to view in the coming weeks so will know exactly what is included in the rent.
4. What to watch out for with commercial leases? Solicitor I went to says you can negotiate up to 6 months free rent? Is this true? Seem a bit over the top especially as he said sign this paper and I'll take care of it for you.
5. Break clauses. What is reasonable that the company will accept? They are an office block.

Ball mark costs of the above please.



Hope for the best. Prepare for the worst.

antrobus

the_matrix wrote: »

...I set up limited company. Can I do this myself or do I need an accountant? ..

You can do it yourself. £20 or less online.

the_matrix wrote: »

... How many people need to directors?....

One will do.

chalkie99

the_matrix wrote: »

I was thinking limited company as if things don't go well I won't be left with huge debts.

Not necessarily as you may well be required to sign personal guarantees for your premises and for anything else you may need.

Your Limited Company will need it's own bank account and the bank will credit check you personally and probably require a personal guarantee for any overdraft facilities should you need them.

A rent free period is quite common but it's length will depend on the demand for the space and how long the lease is. Be prepared to play hardball and walk away if they don't want to negotiate. They will soon call you back.

Don't sign anything that is not clearly understood - The solicitor sounds a tad odd if he said that.

Finally, do you even need an office to start with?

Savvy_Sue

chalkie99 wrote: »

Don't sign anything that is not clearly understood - The solicitor sounds a tad odd if he said that.

however what the solicitor may have been trying to communicate was that if the OP wanted further assistance with negotiations, checking the lease etc, the OP should sign up as a paying customer, because there is a limit to how much free help you can have!

Getting the lease checked isn't something you can economise on. There are so many things which might be slipped in by the landlord and a commercial tenant has very few rights.

Regshoe

As others have mentioned don't expect to be able to completely shield yourself with debts by using a limited company - you will almost certainly have to give some form of personal guarantee on your larger items (and possibly the smaller ones too).

You don't have to have an accountant, but the fact that you are asking some very basic questions suggests that you ought to get a free consultation with one or two and the very least, before going ahead with anything (if you are going to get an accountant it's much better to get them before doing anything that might then need to be corrected).

InsideInsurance

Likewise directors can be held personally liable in certain circumstances if they fail to discharge their duties of a director correctly. If you do a good job and the company just isnt viable thats fine as long as you've not given any personal guarantees but many will require personal guarantees for new startups because of the high risk that they fold.

paddyrg

Nobody will lend serious money to a new LTD company without trading history without personal guarantees, and if they do, then it will be at an interest rate higher than you'll get from lending your own savings to the company anyway.

As for an office - serviced offices are often very flexible and open to negotiation, but unlikely to do free rental periods as smaller startups are their bread-and-butter. If you're looking at regular non-serviced rentals where you may get a rent-free period it'll come at the cost of signing a longer contract (and starting your own electricity, rates, etc accounts). You're extremely unlikely to get both free time plus flexibility.

the_matrix

It's a office building and they rent out from 1-150 workstations depending upon what you need. Do you take out a lease with fully serviced offices or do you just rent one or two workstations like a tenant type of thing not leaseholder?

I have a bit of saving so will not be taking out a loan. Which business bank accounts are best? I failed the credit check for o2/CPW contract so do I need to be worried?

Savvy_Sue

the_matrix wrote: »

It's a office building and they rent out from 1-150 workstations depending upon what you need. Do you take out a lease with fully serviced offices or do you just rent one or two workstations like a tenant type of thing not leaseholder?

You need to read and understand whatever agreements they offer you. They may have 'as and when' rates, or they may do better rates if you commit to a regular or longer term deal. The point is that if you sign up for a year, you'll be committed to paying for a year, even if you decide after a week that this isn't going to fly.

the_matrix wrote: »

Which business bank accounts are best?

It depends: what facilities do you need? If you need to deposit or withdraw cash, you need one with a local branch. If you'll do all your business online or by cheque, you can go for a postal or internet account. Will there be lots of small payments in and / or out, or a few larger ones? You don't have to answer those questions to us, but you DO need to answer them for yourself.

the_matrix wrote: »

I failed the credit check for o2/CPW contract so do I need to be worried?

It depends why you failed? If you were applying for a biz contract, you may have failed because you have no track record. What's your personal credit rating like?

paddyrg

the_matrix wrote: »

It's a office building and they rent out from 1-150 workstations depending upon what you need. Do you take out a lease with fully serviced offices or do you just rent one or two workstations like a tenant type of thing not leaseholder?

I have a bit of saving so will not be taking out a loan. Which business bank accounts are best? I failed the credit check for o2/CPW contract so do I need to be worried?

It can be closer contractually to joining a gym in many cases - your negotiation skills will be to get the flexibility you want for the least price you can get. Be aware of signing up/exit/data/phone/whatever fees and get the minimum committed period as low as possible.

Try your own bank you have savings with - tell them you want to open a business bank account and they'll know your credit history with them and be your best bet. You only want a basic account so make it clear you don't want an overdraft or credit card for the company. Many banks offer 18 months free business banking.