What do you wish you had known before becoming a LTD Co?

paddyrg

Cashflow is what kills small businesses. Don't buy today what you can put off until tomorrow until you have a buffer fund in the bank.

happyandcontented

00ec25 wrote: »

what does that have to do with converting from sole trader to Ltd company, which is what I think OP is questioning.

No, prior to this we have both been employed and now one of us is setting up a Ltd Co to do contracting work, the other will be a second shareholder. The contracting work is for one client and will be for a fixed term, which may be renewable. It is outside IR35.

We will use method B to take payments from the company.

00ec25

happyandcontented wrote: »

We will use method B to take payments from the company.

if the company is the sole source of income for one of you then that person needs a mix of salary and dividends for tax efficiency reasons. Ask your accountant to show you the details

trailingspouse

'That we would be successful' - my original post was in support of the OP, as we did exactly what they are doing in 2011. OH was working as a contractor through various agencies and we decided to bite the bullet and become a limited company.

I run the company on a day-to-day basis, and he continues to do some work on contract but we also use our own sub-contractors. If I'd known 6 years ago that we would be successful I could have slept better in the early days.