DIY of Ltd

Ciwan

Hello

I want to create a web design and development company. I've read here and things appear to be straight forward in terms of setting up the company and getting it registered.

Shall I do this registration step myself? Or is it better to hire a solicitor or accountant and dash out £250?

If you have an Ltd Company and you did the registration yourself, how was it? what should I watch out for?

Any advice would be greatly appreciated.

Thank You.

Pennywise

Ciwan wrote: »

Shall I do this registration step myself? Or is it better to hire a solicitor or accountant and dash out £250?

You've been asking the wrong accountants/solicitors if they're charging £250 for just the company formation! Most firms, especially smaller ones, will do it for a lot less.

Are you sure it's just formation for £250. What about tax registrations, VAT registration or not, book-keeping advice, allowable expenses advice etc - those are the areas where the £250 could be money well spent if it saves you money in the long run by setting things up correctly from the outset.

martindow

Maybe you need to take a step back and speak to an accountant about whether you should structure this as a sole trader or limited company and whether you should register for VAT immediately. Once you have decided on the structures, then worry about the mechanics of setting it up.

Ciwan

From research I've done, I'm sure I want it set up as a limited company and not register for VAT, not yet at least.

How much do accountants typically charge for company formation?

zax47

Ciwan wrote: »

From research I've done, I'm sure I want it set up as a limited company and not register for VAT, not yet at least.

How much do accountants typically charge for company formation?

Why are you fixated on having an accountant do this? Lots of companies out there to do the work, for under £20, this is just one I've used several times;

http://www.companiesmadesimple.com/

and these guys;

http://www.swiftformations.com/

Lots of other options though - it's not rocket science, or expensive.

Advice here; https://www.gov.uk/limited-company-formation/overview

Ciwan

Thanks Zax, I didn't know about them other companies you linked to!

Much appreciated

paddyrg

Do be aware, no matter who does your formation, you're effectively committing yourself to a grand or so a year for the annual returns just in accounting fees.

Ciwan

Isn't that only if my company makes any money? I don't have an accountant yet.

Any accounting software for startups?

Savvy_Sue

Ciwan wrote: »

Isn't that only if my company makes any money? I don't have an accountant yet.

Any accounting software for startups?

You still have to file accounts, even if the company hasn't carried out any activities and is effectively dormant. If your research hasn't revealed this to you, an accountant is highly recommended ...

Ciwan

@savy_sue I knew I had to file accounts, but I thought that was just a matter of time thing? I thought the only cost with filing accounts would be your time? Isn't that right?

Savvy_Sue

Yes, it's only your time, as long as you get it right first time.


It isn't necessarily straightforward however, and if you don't get it right first time it will cost you both time and money.


Going right back to martindow's comment:

martindow wrote: »

Maybe you need to take a step back and speak to an accountant about whether you should structure this as a sole trader or limited company and whether you should register for VAT immediately. Once you have decided on the structures, then worry about the mechanics of setting it up.

Ciwan wrote: »

From research I've done, I'm sure I want it set up as a limited company and not register for VAT, not yet at least.

What advantages do you think a limited company is going to give you, especially while you aren't sure how much money it's going to make initially?