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Setting up as a limited company


TomStutt

Senior Member
#1
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
 

tbwcf

Active Member
#4
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
 

berry

Active Member
#10
PeterBarlow said:
What are you on about Br3n?
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.
 

berry

Active Member
#12
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?
 

berry

Active Member
#14
PeterBarlow said:
(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?

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.
 
#16
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.
 

br3n

Senior Member
#17
br3n said:
Are you really that likely to be sued?
PeterBarlow said:
What are you on about Br3n?
Berry said:
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.
I think you may have explained my point a little better... However Barry, my names Brendan not Brenden - you should know better :d
 

Greg

Active Member
#19
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