Should I register as a Limited Company?

[uncle_rico]

Hi there everyone, Im new here so please go easy on me

I currently work part time in the entertainment industry and I've succesfully linked talent with agents in the past and have decided to put my skill on the line and make some money out of it.

I plan to still work part time, go to acting classes etc but also start up my own agency as well. This is'nt something I can do on a self employed basis as I wont be taken seriously. I will basically make 10% from talents earnings that will be on my books, but if I dont place people in jobs I make nothing. I dont expect to make a huge amount of money from this in the first year and Im sure there will be weeks/months when I make absolutely nothing. So basically my question is in several parts:

1. What type of business should I register as?
2. In this type of business what are my tax implications if I make nothing?
3. With this type of business can I add myself to the client books? (as I mentioned I act too ) it would be nice if I could find my own work and market myself under the company name.

Thanks in advance for all your help

 

[Paul_Rosser]

1. What type of business should I register as?
2. In this type of business what are my tax implications if I make nothing?
3. With this type of business can I add myself to the client books? (as I mentioned I act too ) it would be nice if I could find my own work and market myself under the company name.

Thanks in advance for all your help

1. Either sole trader or Limited company.

Check this post out as it should help you decide - http://www.ukbusinessforums.co.uk/forums/showthread.php?t=281430

2. If you make nothing then in both cases you pay no tax

3. With a limited company you would be "Star Finder limited" or whatever company name you like, with a sole trader you are the business but can be Fred Jones, trading as "Star Finder"

 

[Paddylad]

Might also want to consider an llp as this allows u to use partners tax allowances for when u o start earning profits.

Not too sure about the entertainment industry, but usually llp's are associated with professionals offering a service.

 

[SetupaCompany]

If you feel you will only be taken seriously if you trade as a company then a limited company is probably the way to go as that will come across as much more professional than a sole trader 'trading as' would.

 

[uncle_rico]

Thankyou all so much for your help and responses.
Ltd company is the one I am going to pursue, in this case does anyone know how I would go about paying myself a wage? Or could I just keep the money in the business if I made any?

 

[Paul_Rosser]

You can pay yourself in a number of ways, the most popular is to pay yourself a PAYE salary up to your tax free allowance (Around £8k) and then pay the rest as dividends.

This should explain a bit more - http://www.cheapaccounting.co.uk/advice/sole-trader-or-limited-company.php

 

[dolphinformations]

If you're sure you're going to go Ltd this page may help (scroll to bottom to see differences between sole trader and ltd company):
http://www.dolphinformations.co.uk/sole-trader-v-limited-company-calculator/

As Paul_Rosser says, you'd pay yourself a tax free wage up to roughly £8k, anything above that would be classed as a dividend.

Will you be doing your own books or using an accountant?