|Should I switch from Sole Trader status to Limited Company - UK.|
What are the Pro and Con's
|dive into perl|
| 8:30 am on Jan 18, 2009 (gmt 0)|
Looking for any advice or comments from the community.
I live in the UK, and I am in full time employment,
I run a small software development company in my
spare time which I operate as a sole trader.
I also publish 5+ content based web sites, with one
of these having it's own sole trader business account,
so I can accept payments in the sites name.
I am thinking of setting up a limited company and
making all these sites "products" of that company,
so that I can do away with the two sole trader business
accounts and just accept payments under this new
limited company name.
It is viable, for example, to have site A is a product
of company Y ? listed on the site, and just take
payments under limited company name.
Any advice would be appreciated
Thanks in advance,
| 10:19 am on Jan 18, 2009 (gmt 0)|
yes it is viable and i do something similiar, multiple websites with one ltd company.
i would make sure that the client cc/bank statement shows something that allows you to be contacted, so that they don't get confused when they read their statement a month later and wonder what the purchase was and maybe even dispute it because they don't recognise the company name.
we show a domain name in their bank statement that resolves to a one page site listing sites where they could have made their purchase from, perhaps not ideal but it seems to work
| 12:57 pm on Jan 20, 2009 (gmt 0)|
I was trading as a company a year or so ago but changed to a sole trader. Company regs, lack of company tax breaks etc make sole trader status much preferable for me.
I get round the problem of multiple sites by trading as #*$!xxwebsites, and all payments, Google and otherwise, are made to that name. That means only one bank account which keeps it simple.
Before you go down the ltd company route, talk to friends (not accountants) who trade as a limited company. Going down that route is a real pain in the neck is my opinion.
|dive into perl|
| 1:24 pm on Jan 20, 2009 (gmt 0)|
Thanks for both of your replies.
nomis5 - it's interesting to know you switched back to sole trader status, as I was just talking to an artist friend who went ltd and reverted back to sole trader due to the tax situation.
I think I will remain as sole trader, I like the idea of trading as #*$!xxwebsites - thanks for the tips.
| 1:25 pm on Jan 20, 2009 (gmt 0)|
The benefits of being ltd are getting worse year on year with red tape.
I'll give you one reason why:
Messageboard postings and emails.
New law came in last year which states that you as a representative of your limited company must state your company name and registration on EVERY email you send and, as I find no proof to the contrary EVERY messageboard posting you make on behalf of your company.
Previously this only covered letterheads where any letter you posted in relation to your business had to have the relevant company details. But this new law states that any kind of communication has to display the information.
No joke. If you are on a messageboard discussing anything to do with your business and you do not have a signature / footer displaying the info you can be fined.