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Registering a Business

Hi All,

I have recently been made redundant but have an opportunity to work as a freelancer doing some legal reports for some solicitors.

I have been asked to register at Companies House as a limited company, for no other reason than for due diligence purposes and looking more professional.

I don't mind any of this but since this is a startup I do not wish to be entangled in any lengthy bureaucracy should it not take off.

Have done some google research and it does not seem to be too complicated but I want ask a couple of questions:

  1. I will be working from home initially until I can get some capital raised for premises, is this a problem for a registered company?
  2. Ho w easy it is it to unentangle and deregister the business should it not take off??
Thanks

Comments

  • Lafuma
    Lafuma Posts: 23 Forumite
    edited 22 February 2016 at 4:55PM
    Hi All,

    I have recently been made redundant but have an opportunity to work as a freelancer doing some legal reports for some solicitors.

    I have been asked to register at Companies House as a limited company, for no other reason than for due diligence purposes and looking more professional.

    I don't mind any of this but since this is a startup I do not wish to be entangled in any lengthy bureaucracy should it not take off.

    Have done some google research and it does not seem to be too complicated but I want ask a couple of questions:

    1. I will be working from home initially until I can get some capital raised for premises, is this a problem for a registered company?
    2. Ho w easy it is it to unentangle and deregister the business should it not take off??
    Thanks

    In answer to your numbered questions:

    1. No, assuming (a) there are no restrictions attached to your home restricting this and (b) your client does not prohibit this. etc. But from a company point of view, no issues at all

    2. As long as the company has not traded in the last 3 months, not changed names in the last 3 months, doesn't owe anyone any money (including CVAs etc) or is threatened with liquidation, you can get it struck off for £10 (which cannot come from an account linked to the company involved)
  • Thanks for an informative reply - one last question - is it OK to trade using my personal bank account until the business gets on a more sound footing?

    Thanks
  • Lafuma
    Lafuma Posts: 23 Forumite
    Thanks for an informative reply - one last question - is it OK to trade using my personal bank account until the business gets on a more sound footing?

    Thanks

    Not for a limited company, no.

    You are 2 different legal entities and will have 2 different names. Your solicitor clients will explain more I am sure if you don't understand this :)
  • Great - Appreciate the advice!
This discussion has been closed.
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