To close or not to close

[winnie007]

A friend and I started a ltd company last August. She has a full time job and is unable to commit (which is something I stupidly overlooked when I started the company with her). As a result of not having both directors focusing on growing the business, I feel that the company is not going where we wanted it to. As a result, I found myself a job and I am now thinking of the next steps for the company.

So far, we have only traded very very small amounts and we have no debts. We both own 50:50.

I am not sure if I should dissolve the company, or make it dormant from year 2 onwards, until we are ready to commit again. It took a lot of effort to get it off the ground, so it would be a waste to get rid of the company once and for all. However, it would be unwise to keep the company going, as it is only incurring expenses and not making any money. Now that we are both working full time, our current arrangement means that we can only occasionally take on jobs when we both have the time to. I feel that this is not where I want the company to go.

If I were to close the company, what are the steps? If not, is there any cost effective way of keeping the company alive (albeit inactive)?

 

[RedEvo]

Close it, off load the 'friend' and think long and hard before starting your next business, create a plan etc.

d

 

[JEREMY HAWKE]

It would have worked if you were in the same postion as some of us

Unemployable !!!.We have to make it work we have no choice

 

[simonr]

I don't want to sound rude, but.... the answer is in the question, isn't it? You wouldn't have asked if you didn't already know the answer in your heart of hearts.

S

 

[Gint]

Like person above said. You know answer. But also I would say that we can say what you have to do. Only you know all details and your own wishes. Some of could work without any profit for 1 year. Others could establish business which doesn't give any profit but he even doesn't expect any profit - like it is said WORKING FROM IDEA.

 

[KateCB]

It doesn't sound like there is much to close, and rather than pay for accounts etc until your are 'ready', which may be never, it would be more cost effective to dissolve it and perhaps start again IF you need /want to in the future.

A business that can't do the work it advertises/pitches for will not last anyway, as customers naturally want whatever it is they are paying for 'now' - not when you can fit it in between a full time job and your life......

 

[Gint]

Say what you decided.

 

[cjd]

If you've done all the work of setting up this business and if it now contains some assets - websites, domain names etc? - I'd be tempted to pay your partner a nominal sum for her shares and see if there's a way of keeping it going somehow - even with a new job.

If the business itself is not working - rather than you two not committing, then the answer is easy.

 

[wizzard]

I'd leave it dormant. Remove your friend as director. All you'd have to pay is the filing fees to Companies House each year.