Truss and France Posted October 29, 2008 Share Posted October 29, 2008 Can anybody tell me the benefits of being a Limited company, we have been in a partnership since 1988 and have never looked into being limited. The only thing we really know is that you have to pay corporation tax (dont know how much or when) and if things go 'tits up' you can fold your company without anybody coming after you for outstanding debts, or is that not true. Any advice, much appreciated. Kev Link to comment Share on other sites More sharing options...
fertilebert Posted October 29, 2008 Share Posted October 29, 2008 Can anybody tell me the benefits of being a Limited company, we have been in a partnership since 1988 and have never looked into being limited. The only thing we really know is that you have to pay corporation tax (dont know how much or when) and if things go 'tits up' you can fold your company without anybody coming after you for outstanding debts, or is that not true.Any advice, much appreciated. Kev Hi , the principle behind a limited company is that it is the "company " itself that exists as its own entity , therefore the company can sue or be sued , taken to court etc. You would be an employee of the company in either the form of Managing Director or Company secretary or just a director. At present as a partner in a company if you chose to take a fiver from the takings for your lunch that would be OK , however you take that fiver from a limited company and that would technically be a criminal offence !! Of course it depends on the size of the company as to how much you pay , but really all you need to do is incorporate a name with companies house with three directors, I have been a partner in a business and also a director of one , and unfortunately let me tell you it makes absolutely no difference to creditors coming after you as these days most suppliers will require personal assurances from directors as well . I don't suppose any one can advise you what is the best course of action in the end , but all things considered i would say go limited.Regards Rob Link to comment Share on other sites More sharing options...
Truss and France Posted October 29, 2008 Author Share Posted October 29, 2008 Rob Thanks for that, what about corporation tax? how much is it and whats it on and when do you have to pay it. I dont want to go limited but my partners wife thinks its a good idea. Kev Link to comment Share on other sites More sharing options...
fertilebert Posted October 29, 2008 Share Posted October 29, 2008 RobThanks for that, what about corporation tax? how much is it and whats it on and when do you have to pay it. I dont want to go limited but my partners wife thinks its a good idea. Kev Hi , You have to pay every year at the date you wish your accounts to be filed , if you "google" corporation tax , you can find the inland revenues website and everything you need to know is on there, Rob. Link to comment Share on other sites More sharing options...
leesutton Posted October 30, 2008 Share Posted October 30, 2008 If you have been in business that long why change it....... all that happens is that everyone can find out how much you earned and the financial state of your company. You only go limited in your stage of business if you know you are going to run up loads of debt and then leave the country also you would be classed as a new business and struggle to get accounts especially at the moment. lee Lee Sutton E-Mail: leesutton@centurianfire.co.uk Website: www.centurianfire.co.uk Phone: 0845 094 9870 CENTURIAN FIRE & SECURITY (part of centurian group limited) Link to comment Share on other sites More sharing options...
Guest anguscanplay Posted October 30, 2008 Share Posted October 30, 2008 lots of myth`s about been limited (mainly the one about not having to pay) but loads of usefull pointers here http://www.ukbusinessforums.co.uk/forums/s...ead.php?t=60813 Link to comment Share on other sites More sharing options...
Cubit Posted October 30, 2008 Share Posted October 30, 2008 If you have been in business that long why change it....... all that happens is that everyone can find out how much you earned and the financial state of your company. You only go limited in your stage of business if you know you are going to run up loads of debt and then leave the country also you would be classed as a new business and struggle to get accounts especially at the moment.lee Not quite correct is it. In fact, quite a contradictory statement. How can you run up a load of debt if you can't get an account anywhere? If you're a sole trader and want an account with us - we credit check you, just like we would a limited company. No info, no account. Having traded honourably (assuming)as a sole trader, then many suppliers already have a credit history to refer to far more accurate - for their concerns - than any agency can provide. So why wouldn't they give an account? Link to comment Share on other sites More sharing options...
hpotter Posted October 30, 2008 Share Posted October 30, 2008 Can anybody tell me the benefits of being a Limited company, we have been in a partnership since 1988 and have never looked into being limited. The only thing we really know is that you have to pay corporation tax (dont know how much or when) and if things go 'tits up' you can fold your company without anybody coming after you for outstanding debts, or is that not true.Any advice, much appreciated. Kev It's not true. Try owing PAYE or VAT eg. Another angle to look at (seeing as youve been around in business for ages so must be really old) is selling up. (retiring). We found it easier to buy a ltd firm- lock,stock & barrel. The name & goodwill is tied to the company that owned it (as well as the contracts) so a relatively straight forward case of transfering shares etc. It was a bit of a todo when we bought a much smaller one man band to ensure we got the brand as such (well the legal guy made a meal of it). Not saying Ltd is better, just a different perspective. Really would advise talking to a good accountant. (We're still a partnership BTW - though did look at going ltd, just not right for us) (also not trying to give the impression were big fish. - just splashing in a tiny pool!) Link to comment Share on other sites More sharing options...
Truss and France Posted October 30, 2008 Author Share Posted October 30, 2008 Once again, thanks for the replies. Kev Link to comment Share on other sites More sharing options...
leesutton Posted October 30, 2008 Share Posted October 30, 2008 Not quite correct is it. In fact, quite a contradictory statement.How can you run up a load of debt if you can't get an account anywhere? If you're a sole trader and want an account with us - we credit check you, just like we would a limited company. No info, no account. Having traded honourably (assuming)as a sole trader, then many suppliers already have a credit history to refer to far more accurate - for their concerns - than any agency can provide. So why wouldn't they give an account? When we went from the limited company to a ltd company-t/as we still had to use the ltd company details as we couldnt open new accounts in the smaller companies name as they classed us as a new company..... Lee Sutton E-Mail: leesutton@centurianfire.co.uk Website: www.centurianfire.co.uk Phone: 0845 094 9870 CENTURIAN FIRE & SECURITY (part of centurian group limited) Link to comment Share on other sites More sharing options...
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