Sole trader or limited pros and cons

[Newtons]

So, I’m planning to start a company up late next year and I think I want to go Ltd, a friend who runs his company says to start out as a sole trader. 
what are your thoughts ???

[eggsarascal]

37 minutes ago, Newtons said:

So, I’m planning to start a company up late next year and I think I want to go Ltd, a friend who runs his company says to start out as a sole trader. 
what are your thoughts ???

Company, what do you mean!?

[Retired Climber]

Not this again. First things first; a company has to be LTD. If it's not LTD it's not a company. That's not to say you can't have a viable business as a sole trader, you just can't call it a company. 

 

I have 2 preferences. For small businesses, I prefer sole trader status. Do a VAT return every quarter, payments on account twice a year, and self assessment once a year and then do whatever you damn well like with the money.

 

For a large business ( probably to be grown to IPO), go LTD right from the start. 

For everything in between, the answer is, it depends. 

[doobin]

Of course you can call it (or possibly refer to it as) a company. A company is a well accepted colloquial term for a group of people under one banner who turn up and perform a task for a customer or client.

 

What you can't do is call it a limited company.

[Retired Climber]

5 minutes ago, doobin said:

Of course you can call it (or possibly refer to it as) a company. A company is a well accepted colloquial term for a group of people under one banner who turn up and perform a task for a customer or client.

 

What you can't do is call it a limited company.

I'm not getting drawn into this again. For the sake of all of our sanity, let's agree to disagree. 

[GarethM]

Why don't we ask Newtons for a bit more information before we start a rumble.

 

Are you buying big bits new on credit ?.

Is it just you or a group of guys ?.

 

[doobin]

6 minutes ago, Retired Climber said:

I'm not getting drawn into this again. For the sake of all of our sanity, let's agree to disagree. 

Your loss. You just spunked your 800th post on that! 😆

 

Edited November 14, 2022 by doobin

[GarethM]

Pour one for my homies 

[Retired Climber]

40 minutes ago, doobin said:

Your loss. You just spunked your 800th post on that! 😆

 

Thank you. That's just the wake up call I needed; I didn't realise there was a post counter. Assuming 20 minutes of browsing per post made, if I'd not joined this forum, and done something productive instead I'd have been about £160,000 better off. 

 

See ya 

 

 

[Rich Rule]

Yeah, right o.

 

I believe you.  Is that a Ltd Company turnover or a Sole Traders profit?