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New Limited Company and more than one business

Discussion in 'General Business Forum' started by Shah12121, Sep 9, 2020.

  1. Shah12121

    Shah12121 UKBF Newcomer Free Member

    4 0
    Hi All,

    I have come across other posts similar to mine but didn't get a clear answer.

    I will be starting 2 different ecommerce businesses. Should I register 2 or 1 companies? Aside from time, am I looking at more financial costs if I setup 2 companies? I will be starting another business down the line also.
     
    Posted: Sep 9, 2020 By: Shah12121 Member since: Sep 8, 2020
    #1
  2. Mr D

    Mr D UKBF Legend Free Member

    24,305 2,949
    2 companies is 2 times the admin and accounting costs.
    Is there any reason they can't both be under one company?
     
    Posted: Sep 9, 2020 By: Mr D Member since: Feb 12, 2017
    #2
  3. Shah12121

    Shah12121 UKBF Newcomer Free Member

    4 0
    No reason. Just thought it should be clear, for who, not sure.

    Some people say that if you wish to sell a part of it later it should be separated or something along those lines. I'm not looking at that but just thought it should be separate.
     
    Posted: Sep 9, 2020 By: Shah12121 Member since: Sep 8, 2020
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    16,390 3,466
    There is nothing to stop you selling a part of your business. The sale agreement will detail what assets and liabilities are being transferred.
     
    Posted: Sep 9, 2020 By: Scalloway Member since: Jun 6, 2010
    #4
  5. Mr D

    Mr D UKBF Legend Free Member

    24,305 2,949
    There are times when it makes sense to split parts of the business seperate from each other. Perhaps one to run a shop and one to own the asset of the shop - one company fails the entire lot isn't gone.
    There are some businesses with multiple interlinked companies and it works for them. Just for most of us it would be more work and cost for no benefit.
     
    Posted: Sep 9, 2020 By: Mr D Member since: Feb 12, 2017
    #5
  6. Shah12121

    Shah12121 UKBF Newcomer Free Member

    4 0
    Thank your for the responses. That question is now settled.

    Not sure if it is etiquette to start a new post for a different question but I will ask for now.

    Is there a template out there that simply outlines what I need to do in relation to HMRC and such. I was looking at accounting softwares i.e. Sage for bookkeeping and the HMRC size. Do software like this perform the tasks an accountant does i.e. document submissions? If yes would I need an accountant for such tasks?
     
    Posted: Sep 9, 2020 By: Shah12121 Member since: Sep 8, 2020
    #6
  7. Scalloway

    Scalloway UKBF Legend Free Member

    16,390 3,466
    For a limited company there is only one answer. Hire an accountant. Limited company accounting beyond basic bookkeeping is complicated, as is tax.

    Sage is no longer the market leader it once was. It will enable you to keep the day to day records for running your business but it does not provide you with all the information to make submissions to Companies House and HMRC. Well kept accounts on Sage or similar will help keep your accountant's bill down.

    Here is some information on preparing accounts for a small company.

    https://instantcpd.com/userfiles/course_material/5886261e57898-powerpoint.pdf
     
    Posted: Sep 10, 2020 By: Scalloway Member since: Jun 6, 2010
    #7
  8. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,216 2,476
    No

    This gives some guidance but it certainly doesn't include everything

    No it doesn't what Sage and other software do is bookkeeping, an accountant uses those figures - bookkeeping and accounting aren't the same.

    I have nothing specifically against Sage but don't restrict yourself to it - you have lots of choice.
     
    Posted: Sep 10, 2020 By: MyAccountantOnline Member since: Sep 24, 2008
    #8
  9. Szymon Krzyzanowski

    Szymon Krzyzanowski UKBF Newcomer Free Member

    23 2
    I personally love Sage but hey, I am an accountant. I know that many people struggle with Sage as it is not as user friendly as, say Xero. Many of our clients choose Xero or Quickbooks nowadays.

    Generally speaking the better the bookkeeping the lower the accountancy costs.
     
    Posted: Sep 10, 2020 By: Szymon Krzyzanowski Member since: Aug 21, 2020
    #9
  10. Shah12121

    Shah12121 UKBF Newcomer Free Member

    4 0
    Sounds like I'll need an accountant.

    I was hoping there was a budget friendly software where all I had to do was more or less put the figures into and it would process it all for me and then I can send it to the relevant people.
     
    Posted: Sep 14, 2020 at 6:40 PM By: Shah12121 Member since: Sep 8, 2020
    #10