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Setting up as a limited company

Discussion in 'General Business Forum:' started by TomStutt, Nov 5, 2009.

  1. TomStutt

    TomStutt Senior Member

    Does anyone have any experiencing setting up a business as a limited company instead of being a sole trader. A friend asked me but I didnt know so I said id ask on DF.

    ie, what forms do you need, who do you register with, business names etc.

    Cheers all
     
  2. Tom Sound

    Tom Sound Active Member

  3. TomStutt

    TomStutt Senior Member

    i think my mate said that you cant register a business name with companies house.
     
  4. tbwcf

    tbwcf Active Member

    Get some advice from an accountant, most won't charge for a brief consultation (they do it with a view to doing your returns etc from you). A good accountants advice is priceless things like when its worth setting up as a ltd company opposed to being a sole trader etc etc
     
  5. berry

    berry Active Member

  6. glenwheeler

    glenwheeler Senior Member

    Setting up as Ltd makes life so much harder
     
  7. I am putting off setting up as Ltd for as long as possible...I am quite happy being a Sole Trader!
     
  8. br3n

    br3n Senior Member

    Are you really that likely to be sued?
     
  9. What are you on about Br3n?
     
  10. berry

    berry Active Member

    I think Brenden is saying that the main benefit of limited company is that you have limited liabilty within the confines of the company's assets and balance sheet and if things go bad etc your house and home etc are 'safe' As a Sole Trader and an individual you are personally liable to all debts etc. So if you get sued or anything like that your car, your house, your personal savings etc can be leveraged. Within a Limited company, unless a Director has put up personal guarantees or has malpracticed then the debt is not persued on a personal level.
     
  11. Ah I see! Yes, of course! Sorry, a bit slow this morning!

    Well, has anyone in the design industry been sued lately?
     
  12. berry

    berry Active Member

    er...Me... well not sued, but involved in legal litigation.

    Every company by law should have an Proffesional Indemnity insurance in place to cover legal issues over proffesional malpractice etc should you be sued for a piece of work of proffessional action/negligence during the course of work
     
  13. (I know, everything that can happen has happened to you Berry! ;-) )

    Lately though? and for what?

    So, having only really been commercially active in the design industry for 2 years, is being sued a regular occurrence?
     
  14. berry

    berry Active Member


    No, not common at all, if you have Prof Indemnity cover then it isn't an issue. But most clients ask if we have that cover and at what level. It's part of general terms of business.
     
  15. Oh I see. Thanks for clearing that up Berry!
     
  16. Russell

    Russell Member

    I've weighed this up a couple of times and stayed as sole trader. Recently just got PI insurance as part of a requirement for one venture, a basic plan cost £80 pa so that suits me at the moment.
     
  17. br3n

    br3n Senior Member

    I think you may have explained my point a little better... However Barry, my names Brendan not Brenden - you should know better :d
     
  18. Tony

    Tony Member

    Hmm interesting read.

    I'd just thought I'd always go Ltd if I got my own business going.
     
  19. Greg

    Greg Active Member

    This is something I have looked into in the past, are there any other advantages to being Ltd apart from the liability issues? Is there a point where going Ltd means paying less tax if you earn x amount?

    Thanks,
    Greg
     
  20. Setting up as a Limited company is not worth it unless you're earning more than £60,000 per year.
     

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