[jaykie]

After having a meeting with accountant im swayed to becoming a ltd company, has anyone else done this and do you think it was a good move.

[STEVE-UK]

i wouldnt go limited unless your planning on taking on somebody

[LWC]

Whats the +'s

Why are you swayed?

[Pristine Clean]

Well thats great!

So you are going to be a lyd company why?

Do you work in the commercial sector? , if so they will like it.. it says you are professional and larger than a sole trader.

Are you VAT registered? Yes? No? If not you are saying you are a large company by being LTD but not large as you are not VAT registered. So there is no point if you are not VAT registered.

Plus your accountant will want you to be Ltd as he probably would charge more.. Yes even if your earning have not changed.. he can charge you more as there is more work involved in being ltd.

So its swings and roundabouts. We are Ltd but also VAT Registered.

So think before going LTD dispite what your accountant has told you. Otherwise if in the commercial sector you will look a bit silly being Ltd and not Vat reg. As some jobs you get you need to prove in the commercial sector that you have enough capital to cope with the jobs you take on.

If you are just deealing with domestics its neither here nor there


Dave

[dd]

Check out all the cons. As I undrestand it your insurance will be a lot more expensive. You will have to use a chartered accountant and your accountancy bill will be a lot higher. There is also a cost involved in going Ltd.

Also the tax benefits of a sole trader going Ltd have largely been removed. Fully check out the downside first.

[East coast window cleaning Services]

Ltd is the way to go with been ltd for 5 years now. Yes your accountants bill is more but take it from me my corp tax is low every year never paid more then 2.5k. Yes it also makes you look far more professional when it comes to the larger work (commercial etc) if your just on the residential route then maybe it aint for you. And with regards to the vat just make sure you dont it the threshold each year end.

[jaykie]

Ltd is the way to go with been ltd for 5 years now. Yes your accountants bill is more but take it from me my corp tax is low every year never paid more then 2.5k. Yes it also makes you look far more professional when it comes to the larger work (commercial etc) if your just on the residential route then maybe it aint for you.

One of the reasons is to gain more commercial as looks more pro, and dont you pay less national insurance too

[STEVE-UK]

if you take someone on, limited works in your favour

the limited company is its own identity and you would be employed by 'rwc' as a director, the main reason people set up limited companies is that all debts stop at that company,they cant come after your house etc

[jaykie]

This is another reason i thiought limited so no chance losing home

[East coast window cleaning Services]

if you take someone on, limited works in your favour

the limited company is its own identity and you would be employed by 'rwc' as a director, the main reason people set up limited companies is that all debts stop at that company,they cant come after your house etc

Wrong there mate i bank with Barclays and any overdrafts or loans have to be gaurenteed by me, so if the company dont pay i have to. Mad really cause if the company cant pay the debt how the hell would I.

[simbo]

do you not have to make these bloody payments on account though, really gets to me
paul

[paulscotney]

There is a certain earnings or turnover figure when it makes sense to become ltd. It is quite low. My accountant advised me.  From memory it is  below £20,000 profit.
Just ask your accountant. He is trained and experienced and wants your business for years to come. He has no reason to bullpoop you. Just choose a decent one. No need to go Chartered, Certified ok. 

[paulscotney]

Depends on what you are after

Pay less!! Plus other benefits of credibility etc but paying less is a good start. Myself I like the fact that it shows I am not a fly by night Irish gypo etc.

[Alex Gardiner]

If you have an already established business which is turning over a reasonable amount of money then it is worth going limited.  I have recently gone limited with my window cleaning business and have used an experienced accountant to deal with this.  Although it costs in fees it has saved me a considerable amount of money already.

[dave0123]

Also i belive as being a director in the company you can get expenes for yourself and even company cars etc bought by the company hence saving you tax on the business side. Obv you have to take profits out as income too do you dont go stupid lol.


I dont know if thats true but i imagtion it is and just what ive heard.

[ok cleaning]

 i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck

[jaykie]

Cheers guys, hes told me its something to look into in the middle of 2009 as he worked out how my business has been growing, apparently on £30,000 a year i should save just over £2,000 a year on the cat 4 (i think) national insurance as that stands at 8% profit.

[matt]

ive just done a little building consultancy work for some1 who has just started off on his own doing PR work, he went straight ltd, said it would save him a few K a year in tax

[East coast window cleaning Services]

i have been cleaning windows for 15 years and have been a ltd for last 5 if your turn over is much higher than a cowboy or a pint n pack of walkers weekenders and you would like to look and feel a pro and do business with other businesses as wel as houses regardless of being vat registered you sould become a ltd good luck

My point exactly

[Tosh]

If you have an already established business which is turning over a reasonable amount of money then it is worth going limited.  I have recently gone limited with my window cleaning business and have used an experienced accountant to deal with this.  Although it costs in fees it has saved me a considerable amount of money already.

Just out of interest, how does 'going limited' save you on tax?  I'm probably far from going limited, in fact I'm happy just the way I am; honest; small cheese and no stress, but aren't you still taxed on your profit regardless of whether you're a sole trader, in a partnership, a limited company or even a PLC?

I'm just being nosey; there'll be no smart-ass replies from me. 

What's the difference between being a sole trader and a sole trader whose a limited company?