Running an annual event - sole trader or limited co?

[db281]

Hi all

Myself and a team anticipate running a one day equestrian event next year.

We're wanting to do things properly, and intend on running an extremely professional event.

Would it be best to run this event as a sole trader, or limited company? We do not expect the event to generate in excess of 4k profit.

With it being an event, how do we stand with letterheads? Must it have the sole trader name on t/a, or limited company details, or is merely our chosen event name and details etc sufficient enough?

 

[LowPrices.uk]

How many people are sharing the profit?

 

[db281]

At the moment, 2 or 3 - this may increase/decrease though as this is a newly formed society and it is early days.

 

[LowPrices.uk]

This is a free opinion, and I'm not an expert in best corporate structures, but if you are sharing profits I would imagine forming a company has advantages, plus you also have limited liability which could be useful for protecting yourself financially.

As well as the standard Ltd company, there's also the Limited Liability Partnership, and charitable status to consider. I expect someone who knows more than me will be along soon.

 

[Scalloway]

If you are intending to make a profit and distribute it to the investors then a limited company would be best. You must disclose the identity of the organisation running the event.

 

[RayLevy]

Hi

There are a number of reasons which may favour a limited company:
- limited liability, so no one is personally liable if there is a 'problem'.
- accounting for the income, expenses and profits.
- keeping the intellectual property rights (if you are using a specific name or branding, and you want to keep it to use it for future events, other spin-off projects/products/services).

However, the set up and accounting costs are going to eat into your small profit, and then what do you do with the company when you've finished the event? Some more costs (although not a lot) to maintain it and / or close it. And then you may need to open a bank account...

If you are planning to do another event this year, or next year, then it may be worth putting in the effort to set it up correctly now, but if it really is a one-off, and there are no branding / IP issues to worry about, then I'm not sure I would bother.

Ray

 

[Paul Kelly ICHYB]

If the turnover is considered to be big, the risk might also be big, therefore the protection a Ltd company offers might be beneficial.

 

[Bob]

Equestrian event = risk. I would want a limited company or LLP and more importantly good insurance. Have a look at Cliverton if you haven't done so already