Sole Trader or Limited Company

I doubt whether it's worthwhile forming a limited company in your circumstances but I would ensure that you are adequately insured against eventualities such as those you have pointed out.
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Ian

Hi Alison,

I agree totally with Ian.  Test the water and go Limited at a later stage. Why has the 'worst case scenario' reared its head?  Are your products suspect?  Can you get a guarantee for the products and transfer that?

Cheers, Nigel 

Thanks for the replies.  The items aren't anything untoward at all.  It will be baby clothes and toys in the first instance, moving on to other types of gift boxes if it takes off.

Well I agree with the above then. Start off as a Sole trader to test the water at least and see how things develop.

Jacqui
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www.creacomdesign.com

Graphic Design • Web Design • Print

Hi again Alison.  You may be aware of this, but I seem to recall that baby toys have to be sanctioned by a government authority.  I can't assist further, but I'm sure I've read it somewhere a while back. I hope someone can assist further. Limeone?

Cheers, Nigel

Thanks guys.  Probably just having pre-start-up jitters.  I hadn't thought about it until it was mentioned to me.

I would quite agree with the above - being a sole trader is easy and cheap, and a good way to test something like a website which could do really well, could do nothing. Any losses you make can be offset against any taxable income you may have which is always a bonus if things don’t work out for you.

The only real issue is one of liability which as mentioned above can be addressed with an insurance policy.

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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