Going from sole trader to LTD

[jonnywhite]

Hello

I've been trading for three years now as a sole trader and think it's time to take the leap and register as a limited company.

At the moment I'm VAT registered, registered as an employer, do my own accounts and have all the necessary insurance set up for me as a sole trader.

Firstly if anyone has done this before, do they have any tips?

Is it worth staying as a sole trader and setting up a ltd company and make the transition over a year?

Any recommendations on accounting for a ltd company?

Many thanks!!

 

[Andrew @ PLA]

Hi Johnny and welcome to the forums. This thread >>>Sole Trader v Limited Company<<< is probably the best place start, but I would also talk to an Accountant before you make the jump.

Good luck.

 

[MyAccountantOnline]

Hello

I've been trading for three years now as a sole trader and think it's time to take the leap and register as a limited company.

At the moment I'm VAT registered, registered as an employer, do my own accounts and have all the necessary insurance set up for me as a sole trader.

Firstly if anyone has done this before, do they have any tips?

Is it worth staying as a sole trader and setting up a ltd company and make the transition over a year?

Any recommendations on accounting for a ltd company?

Many thanks!!

Hi Jonny

Trading via a limited company can save tax but it does bring with it various legal and accounting responsibilities. Its quite a change for a soletrader to trade via a company.

The transfer of a soletrade to a limited company also gives potential tax savings if done correctly. With this in mind I wouldnt advise you running a company and soletrade alongside for a year.

I am bias but with a limited company you do really need to use an accountant - it neednt cost a huge amount in fees but with the amount of knowledge required you do really need professional help with a limited company.