I am setting up a small business, for the time being it will only be me working for the company, but I will need to employ people within the next 6-8 months. Are there tax advantages to setting up a limited company?
Also as a sole trader would I still need to register my company?
2007-03-24 21:19:59 · 8 answers · asked by Lupee 4 in Business & Finance ➔ Small Business
A sole trader is responsible for all debts , and a limited co restricts the debts to the assetts of the company !!
2007-03-24 21:26:36 · answer #1 · answered by nicemanvery 7 · 1⤊ 0⤋
I recommend you speak to an accountant, there are tax advantages for operating as a limited liability company and your liability is normally limited to the number of shares in the company. I believe that you still need with the inland revenue, even if your operating as a sole trader.
2007-03-25 01:32:22 · answer #2 · answered by Macbeth 2 · 0⤊ 0⤋
There are advantanges and disadvantages of being a soletrader and a limited company. The main thing about being a limited company is the protection side, as a limited company is a seperate legal entity within itself, meaning if you were to be sued as a Ltd company, only the assets of the company can be sued for. Whereas if your a soletrader and you get sued, potentially you could risk personal assets being taken away, i.e. your house, car etc. Send me an e-mail if you want more information, as Im a soletrader accountant !! phil_osullivan@msn.com
2007-03-25 04:38:39 · answer #3 · answered by sully316_uk 1 · 1⤊ 0⤋
the difference between being a Ltd Co. and a Sole trader is that all the transactions that you do as a Ltd Co. have a liability that is specific to the company and not yourself, as you would be personally liable for transactions as a sole trader.ltd co. have a seperate legal identity from that of your own. Basically liability is 'limited' to that of the company.
2007-03-24 23:29:35 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Go Limited co. from the start this will protect your own assets if you go bust or get sued.
It only costs a few pounds to set-up. Your regional development or Business Link centre shoudl be able to help you if you are a new startup (the advice and support is free).
2007-03-24 21:40:12 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Set yourself up as a Ltd Co. Consider paying yourself about £6k a year to keep your NI contributions up. Then, assuming you make a profit, pay yourself a dividend, which is only taxed and does not attract employers or employees NI. It'll potentially save you thousands.
2007-03-25 07:07:51 · answer #6 · answered by Gordon S 2 · 0⤊ 0⤋
do a corporation. it limits everything within the corporataion. any liability, insurance etc. issues will be limited to the corporation. nothing can get to your personal assest if you do it under corp.
sole ownership means if anything goes wrong, you'd go down with it too. your personal assests will not be protected. anyone can go after you if anything happens. same apply to partnership.
consult with accountant is the best bet.
we set up our company under corp. after talking it over with our accountant.
2007-03-24 21:51:50 · answer #7 · answered by confused mind 1 · 1⤊ 0⤋
Do you mean sole proprietorship? If so, I wouldn't even consider it. You should set up some type of corporation for liability purposes (S-corp, LLC, C-corp)
2007-03-25 08:59:09 · answer #8 · answered by jdkilp 7 · 0⤊ 0⤋