to go limited or not?

[riemaflee]

Hi

I'm slowly starting my own business (online retail with localised sales, and hopefully a real shop eventually) My original plan was to go limited straight away as suppliers seem to prefer it when you're a new client. However, an accountant said it wasn't really necessary just yet and actually cost start-ups more money and created unecessary paperwork. Admittedly he was giving general advice to a few people but he has managed to confuse me. (it doesn't take much!)

So can anyone out there help? I'm currently still employed so would being limited make the whole tax situation simpler?

Also is there a real difference between having yourself set up as limited by a solicitor or accountant or doing it through one of the online companies who offer this service? Being a start-up money is really tight so the online firm that was recommended to me look like very good value - but I can appreciate that they might not seem so good a few months down the line!

Sorry if I sound a complete numpty - this is all very new to me. And I am planning on going to an accountant but just wanted to get a better idea myself first.

Thanks!

[PI Guy]

I'm currently still employed so would being limited make the whole tax situation simpler? There's more paperwork than being a sole trader but that might be ok if you can handle it. have a look here. You will have to register to download the docs. The main advantage of a ltd company appears to be that there is limited liablity and there are also some tax benefits. http://www.pottershand.co.uk/ard/documents.asp?AID=1042&SID=10&FID=17910

Also is there a real difference between having yourself set up as limited by a solicitor or accountant or doing it through one of the online companies who offer this service? Being a start-up money is really tight so the online firm that was recommended to me look like very good value - but I can appreciate that they might not seem so good a few months down the line! There's no difference and its cheaper. http://www.quickformations.com/index.qmd very fast turnaround

[riemaflee]

Really appreciate the advice. Particularly re using online services to go limited. The accountant I spoke to looked like I'd just suggested boiling his mother! I'm reassured now that that is just because of the fees he'd miss out on...

[Kent Accountant]

There's no difference and its cheaper. http://www.quickformations.com/index.qmd very fast turnaround

I don't necessarily agree with that, but then you wouldn't expect me to :)

There is far more to incorporating a business than just registering it with Companies House.
Should you incorporate?
Who should be the shareholders?
Who should be the Company's officers?
Is there any goodwill to transfer?
When should the transfer take place?
What remuneration should you draw once you are incorporated?
What will the effect be on your current tax liabilities?

There are other points but it really does make sense to speak to an accountant about your personal situation before you do it.
Most of us form the companies online now anyway so it takes no longer for an accountant to do it, but more importantly we tend to complete all the necessary documentation after incorporation such as minutes, share certificates, HMRC registration etc etc

[riemaflee]

Thanks Bob - I realised I would have to talk to an accountant but I just wanted a slightly better understanding/idea of what I should be asking.

With the whole still working complication I've not had as much time as I would like to have read up on all of this, and the forthcoming changes etc. I'm sure once I had a fully working brain.....