Forming a limited company
gazzer2000 started this topic @ 22:33 on 02/10/2009
Hi all I am new to this site and would appreciate some advice. I am a sole trader in the construction industry. I have just got the biggest contract to date and will now have to be vat registered. I was thinking in my mind that it might be more beneficial to me to form a limited company so that I will receive a lower wage from my company instead of being taxed to highly on my earnings. Am I thinking the correct way? This contract will see me through until March and will hope to get more thereafter i am also having to pay subcontractors. The biggest problem that I have is that I am under a debt management program at present as I have unsecured debt of around £50k can I still form a limited company with all of this concidered? Also I am having big difficulties oppening a busisness bank, all I have asked is to have a account with check book and no overdraft or cards and have stated to abby and alliance and lester that I will open the account with £15k however they have turned me down flat.
Can anyone offer some good advice?
Many thanks
Garry Crouch
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RE: Forming a limited company
pk business services | 04/03/2010 10:10 AM
firstly try some of other banks (Lloyds TSB & or Halifax) are simpathetic to this situation before forming a company if you haven't done so already
explain your situation (debt management) etc
You are going to have to establish new credit terms anyway as you would be trading as a limited company (dont expect credit from suppliers as they wont give you it as you are a new company, nothing to do with your personal circumstances)
You will also lose all goodwill established under your own name unless you make the name of the company such that it can be linked back to your old business
Fair Warning though companies have a lot more work involved and compliance work to be dealt with from day one over sole traderships
ask your accountant about how much he/she will be charging for the services
Of course as an accountant of 25yrs I would be happy to give you a quote and assist you in any way with the formation of the company if you haven't as yet done so
PK Business Services
office@pkps.demon.co.uk
RE: Forming a limited company
tigeress289 | 14/04/2010 11:02 PM
I can see in years to come, there will be companies that help you claim back monies from IVA agreements. You read it here first.