Advice on starting a limited company

asoe209

Hello all I was hoping for a bit of advice on starting a limited company, I have been searching the web trying to find out the answers to a few question that I have but now hoping a few people here

may be able to answer them. I registered as self-employed about a year and a half ago but only really traded form Jan-Mar 2013. Since then I have done nothing.

I’m now looking to start again as an ltd, so here are my questions.

1. As the company will be starting with nothing and ill be putting my personal money into it to get things going to buy stock paying for website advertising and other bits and pieces. Can I get that money back from the company? Im assuming that this is me loaning the company money.

2. The next one is how do I go about actually paying myself a salary, as its early days there would be not set salary that I could set myself but could I take money out on a monthly basis as and when I needed it?

3. Will there still be tax to pay even if the company does not make a profit? from what I worked out I don’t see a profit being made in the 1st year at least an there is a good possibility of a loss due to the stuff that will still be required and start-up funds.

4. Following on from tax, if I do not do any sort of trading for the 1st year and I use this time purely for laying down ground work, i.e. cards websites and other company related things will there still be tax to pay.

5. What sort of impact will this have or how can it effect my normal working life as I will still be in full time employment while starting this up.

6. Is there anything that I can put to the company that I bought as a sole trader like computer stationery etc?
If anyone could advise it would be a big help, thank you for taking the time to read this.

colino

Sorry, but from your level of questions you really need to find a good, local, recommended accountant. The limited company will no longer be "you", it's a separate entity and whether you put in capital, give a directors loan and remove funds by loan repayment, salary and/or dividend can't really be covered enough, to cover you, on an online forum.

Aquamania

asoe209 wrote: »

Hello all I was hoping for a bit of advice on starting a limited company, I have been searching the web trying to find out the answers to a few question that I have but now hoping a few people here

may be able to answer them. I registered as self-employed about a year and a half ago but only really traded form Jan-Mar 2013. Since then I have done nothing.

I’m now looking to start again as an ltd, so here are my questions.

1. As the company will be starting with nothing and ill be putting my personal money into it to get things going to buy stock paying for website advertising and other bits and pieces. Can I get that money back from the company? Im assuming that this is me loaning the company money.

2. The next one is how do I go about actually paying myself a salary, as its early days there would be not set salary that I could set myself but could I take money out on a monthly basis as and when I needed it?

3. Will there still be tax to pay even if the company does not make a profit? from what I worked out I don’t see a profit being made in the 1st year at least an there is a good possibility of a loss due to the stuff that will still be required and start-up funds.

4. Following on from tax, if I do not do any sort of trading for the 1st year and I use this time purely for laying down ground work, i.e. cards websites and other company related things will there still be tax to pay.

5. What sort of impact will this have or how can it effect my normal working life as I will still be in full time employment while starting this up.

6. Is there anything that I can put to the company that I bought as a sole trader like computer stationery etc?
If anyone could advise it would be a big help, thank you for taking the time to read this.

In response to your numbered questions:

1. Depends. If you loan the company money, yes you are entitled to have it repaid. Of course the company will only be able to repay you if it starts to make money.

2. Seems like you've answered that yourself

3. You only pay (corporation) tax on profit.
So no profit = no tax due.

4. See the answer to 3 above. But you need to clearly understand the difference between cash flow and Profit & Loss.. As previous poster suggested, you may be best taking professional advice on this as it seems you don't understand.

5. Only you can assess what impact it will have on your life.

6. You can donate what you want to whoever you want.

asoe209

Thank you for the responses.

When it comes to talking to an account, with these sort of questions do you have to pay for that?

that is on my list of things to do just thought i would try my luck here to.

Aquamania

asoe209 wrote: »

Thank you for the responses.

When it comes to talking to an account, with these sort of questions do you have to pay for that?

that is on my list of things to do just thought i would try my luck here to.

No, accountants that have spent years learning the ins & outs of accountancy offer their professional services to all and sundry anbsolutely free of any charge, because they know that a business that makes money has to pay tax, so to avoid paying tax they don't charge any fees.

:cool:

asoe209

ok ill make a few calls on Monday and try and talk to one.

there is one across the road from me but i think they close before i get home for work. so it may be a half day job.

zygurat789

asoe209 wrote: »

Hello all I was hoping for a bit of advice on starting a limited company, I have been searching the web trying to find out the answers to a few question that I have but now hoping a few people here

may be able to answer them. I registered as self-employed about a year and a half ago but only really traded form Jan-Mar 2013. Since then I have done nothing.

.

Never mind what happens with an Ltd, why would you want one in the first place. From what you have said it is the last thing you need.
Do you realise it is quite possible to make a loss and still pay tax?

asoe209

No I never that's part of the reason why I asked.

The only reason I'm thinking to go ltd right now is for some suppliers. I have been talking to a few and some don't seem to keen with dealing with self employed.

The other thing was having the business separate from my self.

And I was concerned with the tax as well with being a sole trader. And still in full time employment. But that's some thing for the accountant to explains.

IronWolf

You will need an accountant for end of year accounts and that will cost at least £1k.

It may be easier to start off as self employed until you are making enough money to make those kind of fees worthwhile. That is unless you want the legal protection and separation a Ltd co brings.

whiteslice

Isn't that a bit inflated though? I know people who engaged an accountancy firm to do a company's annual accounts, and that was a few hundred squid, rather than north of 1k. That's in London too.

Savvy_Sue

asoe209 wrote: »

The only reason I'm thinking to go ltd right now is for some suppliers. I have been talking to a few and some don't seem to keen with dealing with self employed.

If it's just that they don't want to open a credit account for you to buy supplies, offer to pay up front (by cheque or cash or credit card or BACS - offer what suits YOU and see what they say).