Letter to supplier - Sole Trader to Ltd

[DavidWH]

Probably a simple solution but I'm struggling to find how to word it:

Heres the Scenario:

From the 6/4/13 my business (sole trader) and my dad's business (sole trader) are merging to for one business (limited company)

Meeting with the accountant everything seems fairly straight forward. All the outstanding invoices due to my business (sole trader) are paid to me in the usual way- that is my money. With this money I should then settle my supplier accounts, and the remainder I will place into the new Ltd.

I will need to change these supplier accounts over to the LTD.

Do I need to write to the supplier and say that all invoices prior to the 6th April 2013 will be settled personally, and all invoices after that date will be via the LTD co.

Or can I simply write to tell them that with effect from the 6th April my company will trading as XYZ Ltd, and this is our new billing address?

I doubt it makes little difference where they are getting paid from?

 

[MikeJ]

It does.

At present, if you don't/can't pay their bill, then they can come after you personally for the money.

Once you become limited, they're dealing with the company. They therefore need to be aware of the change, and make sure they are still happy to offer credit terms to the new organisation.