saldridge started this topic @ 13:59 on 09/07/2005
Hi,
I'm looking to start up my own recruitment business - first year turnover - approx £30,000 Any advice on whether to go Sole Trader or Ltd company - I spoke to one accountancy firm and he said its best to go Ltd company but I think he earns more money that way and was unsure of his real motives.
Help!
RE: Sole Trader or Ltd Company?
James Smith | 09/07/2005 02:51 PM
Assuming that the £30k is mainly profit and you don’t have any other forms of income than there are certainly tax advantages in going for a limited company.
You are quite correct that accountants earn more in fees than for a sole trade as they are considerably more complex to run, but a reputable accountant should put that aside when issuing advice, and concentrate on what is best for you the client.
I should however say (as explored in several similar posts) there is a lot to be said for starting as a sole trader, proving your business model, and then incorporation at a later date, especially if losses are likely to occur in the first period.
It’s very hard to suggest other than in general terms what the best route is without knowing about your circumstances in detail.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Sole Trader or Ltd Company?
saldridge | 09/07/2005 08:20 PM
Hi James,
Basically my situation is that I'm leaving my current employer shortly to do basically the same thing except for myself - I'll have some capital to cover me for about 6-months until business starts coming in - this would be the first tme I'll be taking the plunge and sole trader has always seemed the attractive route as its easy and cheap to set up - but as ever you start to wonder if its best to just go Ltd straight off. How much would it normally cost to set up and have all my accounts sorted out for the first year?
Thanks for any advice you may have.
RE: Sole Trader or Ltd Company?
James Smith | 11/07/2005 09:20 AM
It is difficult to quote without knowing your precise circumstances, my website has some standard fees listed:
http://www.jamesesmith.co.uk/fees.htm
You would probably qualify for the "from" figures with a small service business structure.
Please feel free to call me to discuss your circumstances in more detail and to see what route would be most suitable for you. I imagine given your industry a limited company would add somewhat to your credibility so this might be the one to go for, tax considerations aside.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
