Ltd company for domain names

[georgiou82]

HI,

I have around 300 domain names... I was wondering whether anyone else had setup a company for their domains? I was considering it as I am about to start my first site that actually accepts payments and will be a fully functional site.

Does anyone know if there are any benefits of having domains in a company?

Thanks

 

[olebean]

HI,

I have around 300 domain names... I was wondering whether anyone else had setup a company for their domains? I was considering it as I am about to start my first site that actually accepts payments and will be a fully functional site.

Does anyone know if there are any benefits of having domains in a company?

Thanks

Geo

Only you will know the rough value... It maybe wise to keep the domains in your name, lease the domains to your company for a nominal fee.... If you get a large sale run them through the company!

Do keep in mind ltd companies will cost approx 500+ per year to own (accountants fees) and directors are subject to working time regulations etc etc

(the normal disclaimer this does not constitute professional advice, just the ramblings of an olebean.... You should consult an appropraite profession)

 

[BFTUK]

I'd imagine it would have similar benefits as if you were setting up any other business.

Your best bet is to speak to an accountant (most do a free initial consultation) to see what is the most tax efficient way of holding your domains and sites.

 

[Ellis]

If you make less than £5000 a year from domaining you're wasting your time!

 

[georgiou82]

awesome, thanks guys. My gf's dad is an accountant so may ask him!

but after atlanta post maybe not, lol

 

[olebean]

If you make less than £5000 a year from domaining you're wasting your time!

It also depends on your motive: ie self protection or finance


Atlanta isn't wrong there (if not more)

 

[Ellis]

One obvious advantage is that you can claim back VAT on all your domain purchases.

On the flip side - if you ever manage to sell one you - you'll need to charge VAT.

An extra 17.5% could put some of your buyers off.

Another advantage is, if you're considering registering large numbers of TM & typo domains. Should you ever find yourself in the High Court, you won't loose your house or your car etc.

 

[olebean]

One obvious advantage is that you can claim back VAT on all your domain purchases.

On the flip side - if you ever manage to sell one you - you'll need to charge VAT.

An extra 17.5% could put some of your buyers off.

Another advantage is, if you're considering registering large numbers of TM & typo domains. Should you ever find yourself in the High Court, you won't loose your house or your car etc.

Atlanta

VAT rules are equal whether the company is ltd/plc/sole trader/partnership

You dont have to be registered for vat as an ltd (one of my previous companies wasn't)

 

[georgiou82]

Fair point about the VAT.

I did however once nearly get sued. I bought www.tmobilecallertunes.co.uk and www.t-mobilecallertunes.co.uk they must have spent thousands with Lovells! Eventually gave me £90 per name ; (

But surely not if you are trading under a ltd company. They can only limit what they take to the assets of the company, not personal possessions/property

 

[Ellis]

You don't need to register for vat if your turn over less than £60,000.

Anymore than that it's mandatory.

 

[olebean]

Fair point about the VAT.

I did however once nearly get sued. I bought www.tmobilecallertunes.co.uk and www.t-mobilecallertunes.co.uk they must have spent thousands with Lovells! Eventually gave me £90 per name ; (

But surely not if you are trading under a ltd company. They can only limit what they take to the assets of the company, not personal possessions/property

It is extremely rare for the corporate umbrella to be removed through companies house... If you are taken to court they are more likely to consider a v small company as a dodge and make you personally liable (better to resign and bust the company first, move all the assests to a new company)

 

[BFTUK]

It is extremely rare for the corporate umbrella to be removed through companies house... If you are taken to court they are more likely to consider a v small company as a dodge and make you personally liable (better to resign and bust the company first, move all the assests to a new company)

I'm not sure this is correct.

I don't believe that the courts can consider any company a 'dodge' and go after the directors personally unless any of the directors have personally made any guarantees etc.

 

[olebean]

I'm not sure this is correct.

I don't believe that the courts can consider any company a 'dodge' and go after the directors personally unless any of the directors have personally made any guarantees etc.

Personal guarantees don't have to exist for directors to be held accountable... In terms of dodge, i mean setting up a company then busting having repaid directors loans, striped funds out etc... In these cases and depending on the amounts involved and the determination of any debtor, a court could invoke the debt onto the directors...

 

[netserve]

It is possible for liability to pass from the company to the Director if the director was considered to be acting 'alone' and in a personal capcity. ie if a court decided you'd created the company to protect your personal assets from your 'risky' activities then they could break down that protection. Of course the situation is all very serious and at a court level by the time that sort of decision is being made.