I've set up a business as a sole trader doing removals and turnover about £100k a year and £40k profit. Should I set it up as a company now - what are the advantages and disadvantages?
2006-09-19 02:43:16 · 9 answers · asked by mharbot 2 in Business & Finance ➔ Small Business
The advantage is the limit liability but most importantly customers would be reassured by you having company status.
2006-09-19 02:52:50 · answer #1 · answered by Heather 5 · 0⤊ 0⤋
As an accountant, i can advise that changing the status of your company will be beneficial to you with regards to taxes.
There are more tax benefits for a company than a sole trader as income tax is higher than corporation tax.
Obviously this isnt the only benefit, there are many more tax saving ways. The only downside to having a company is the extra administration involved.
Also, you didnt mention whether you are VAT registered. If youre not, then you should register asap.
I can help you set up your business and provide tax advise. if you need more i can be contacted at info@pmaaccountants.co.uk
2006-09-19 04:54:24 · answer #2 · answered by Pat 4 · 0⤊ 0⤋
Becoming a LLC (Limited Liability Company) will give you the same tax benefits that corporations receive, while also allowing your personal belongings to remain seperate in case a judgement was ever filed against your company.
2006-09-19 02:51:18 · answer #3 · answered by GreeneyedCowgirl 5 · 0⤊ 0⤋
As you should be charging VAT by now, there are no advantages left to being self employed, it is best to become a LTD company.
2006-09-19 02:54:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Try asking the question here. I would definitely try here, its FREE to register and you can post a profile to 1000s of Like minded entrepreneurs worldwide, about you, your business or business you are looking for...good luck
2006-09-19 09:07:23 · answer #5 · answered by Jester 3 · 0⤊ 0⤋
I would think that `going limited` would be an advantage, it adds credibilty to your business, but, as for taxation etc...you must consult your accountant, bank etc....
Maybe your best customers could give valuable advice too.
Good luck.
2006-09-19 02:57:08 · answer #6 · answered by Robert Abuse 7 · 0⤊ 0⤋
May depend on which country you operate in. Some previous answers to this question make assumptions on that subject (e.g. the person mentioning VAT assumes you operate in the UK).
2006-09-19 02:55:49 · answer #7 · answered by dryheatdave 6 · 0⤊ 0⤋
Corporation Tax will steal your profit
2006-09-19 02:45:20 · answer #8 · answered by Anonymous · 0⤊ 0⤋
keep it small and simple.
2006-09-21 03:35:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋