limited or not....

[Robert_S]

Just curious if anyone can spell out the pros and cons of becoming a limited company.

 

Thanks

[Peter]

pros

 

limited liability if everything goes tits up

get taken more seriously as a business

pay marginally less tax

you can run a paye scheme so you pay tax as you go, rather than getting a big bill at the end of the year

 

cons

 

a bit more paperwork

[Buzz]

ALOT more paperwork ! limited liability is a nonsense as because your a small company you'd have a hard job proving you didn't know your going tits up. A a small company you as a director will have to put up a personal garuntee for almost all borrowing.

 

I'd avoid it, I was told to go LTD by the Prince's Trust some 7 years ago when the first 20k of profit was tax free. All that has changed now.

 

Speak to your accountant is the best advice mate....

[Peter]

Depends what kind of work you want to do. If its all small domestic stuff there probably isnt much point.

 

Your right about the director's guarantee thing though.

 

An accountant will almost certainly advise going ltd, as it means more work for them....

[Buzz]

I'd like to think not if you have a good accountant lol, some of the biggest companies in this country are sole traders Peter, Eddie Stobbart, Jenkinson Forestry Products etc.

 

To be taken seriousley you just have to run a professional company not be LTD

 

Just my opinion lol

[David Riding]

I'd like to think not if you have a good accountant lol, some of the biggest companies in this country are sole traders Peter, Eddie Stobbart, Jenkinson Forestry Products etc.

 

To be taken seriousley you just have to run a professional company not be LTD

 

Just my opinion lol

 

If your a sole trader are you accounts still available to be checked by any one who want too at company house or those other internet sites that offer such a service for fee. The reason I ask is that I guy from Cheshire County Council rang me about a tender but soon as I said I was not limited and did not have a company number he virtually hung up the phone.

[skyhuck]

My Co as been LTD since 2000, I have borrowed on several occasions up to £30K and have never been asked for a personal guarantee.

 

All my borrowing as been for machinery so I do asset finance, I would not borrow for working capital and do not want an overdraft.

[Gregsie]

If your a sole trader are you accounts still available to be checked by any one who want too at company house or those other internet sites that offer such a service for fee. The reason I ask is that I guy from Cheshire County Council rang me about a tender but soon as I said I was not limited and did not have a company number he virtually hung up the phone.

No, the only person you have to file your accounts with is the taxman and that information is kept confidential.

[Buzz]

If your a sole trader are you accounts still available to be checked by any one who want too at company house or those other internet sites that offer such a service for fee. The reason I ask is that I guy from Cheshire County Council rang me about a tender but soon as I said I was not limited and did not have a company number he virtually hung up the phone.

 

They will just ask for a copy of your accounts, it is quite normal on larger contracts and tenders to have to provide VERY detailed financial information whether you are LTD or a sole trader.

 

You should rarely come across these situations in Arb unless your going for LA long term tenders.

[volvo]

No, the only person you have to file your accounts with is the taxman and that information is kept confidential.

 

Only if your a sole trader.

Most utilities companies prefer a ltd company also it depends on your takings whether it is to your advantage to go ltd.

I would strongly advise speaking to good accountant and not a freelance one ,to many cowboys in that trade also.

 

Sorry BUZZ i was having a "nap"