[Mikey Warner]

Hi Guy's,

Just Before Xmas there was a debate/gripe : about Ltd Companies and Sole/Private Traders the later being classed as Cowboys This I think is the biggest load of Bullpoop I have heard.

Everybody in the world knows what a Mars Bar is and as far as I know the company is still a "Sole/Private Trader" and they proudly state at the bottom of the Mars Incorporated web site:
Fiercely independent and committed to its "private" ownership, Mars is now a truly global powerhouse, providing a platform from which today's innovations can become tomorrow's world-leading brands.

The story of mars is pretty simple, in WWII the army/goverment wanted a quick glucose/suger intake for the soldiers which they could carry in their backpacks and a guy from the US had been selling the Mars for a few years and offered this to the Army and Hey Presto! He hit the jackpot!! every soldier fighting us and uk carried a Mars Bar, so starts the legacy of probably the worlds most well known confectionary bar.
And,..... Until the day he died "Mr. Mars" still drove round in a middle of the road family saloon and was a humble man.

So, if sole/private traders are cowboys, they make a bloody good chocolate bar!!

Mikey

[gibbouk]

frankly i got bored with the arguement and switched off from it. the reason behind it is elitism, by forming a ltd company most then seem to think they are far better than us sole traders. big deal what does it cost to form one under a 100 quid big deal i could start 3 would i be 3 times better than i am now.
the whole i am better than you debate happened before on another forum.

[Majestic]

Are ltd companys not just a way of protecting yourself if you go bust  

[Mike Halliday]

Companies become ltd for tax & libility reasons not to look more proffessional or to be elitist.

Although things could soon change, I cannot see any reason why all sole traders don't become ltd

Mike

[Majestic]

Hi Mike
Go on then who , or what is no 1  

[Mike Halliday]

Maj'   At the moment as an employee of your company you can pay yourself a minimal wage which is taxable, then pay yourself the bulk of your income as a dividend which is tax free.

this is a legal way of paying a lot less tax.

Mike

[STEVE71163]

I was told that your accountants bill would at least double if you went Ltd and to be honest i could not see any advantages so stayed a sole trader. You are more covered if things go wrong though  Whether you are Ltd or not though has no bearing on if you run a professional business or not :

Steve

[paul]

ive been a sole trader since i started but my standard of work outshines some of the big companys that are ltd the only reason people go ltd is for liability in case the business goes down the pan so you dont lose ya home i intend to go ltd from april next year but that is for tax reasons and the higher risks i will entail contracting for bigger firms

[pdhanson]

Maj'   At the moment as an employee of your company you can pay yourself a minimal wage which is taxable, then pay yourself the bulk of your income as a dividend which is tax free.  

this is a legal way of paying a lot less tax.

Just to clarify, Dividends are NOT tax free, actually they are taxed at higher than the basic rate.  They are free of NI which is quite different.

Silly