Need your help - I am thinking of going limited

[snooze]

Hi all,

I am thinking of going limited and want to get some feedback from those that are those who don't this it's needed.

Q. Do you trade under a Limited company and does it help when compare to when you weren't?


Why I am thinking this way. I get the feeling that businesses are not taking me serious when I tell then I am not limited.

 

[alex]

I went limited after 6 years as a sole trader. I agree that you can be taken more seriously and have the bonus of limited liability, but remember tax and accounting implications as well as other obligations make things more complicated. I'd advise you get an accountant/bookkeeper to advise you before you even start up. I didn't and put 2k capital into the company. After getting a bookkeeper I reduced my holing to £1, with everything else in the directors' loan account meaning the assets could be withdrawn tax free if necessary. There are many other little hints I hadn't a clue about that I have now learned through my bookkeeper who charges about £20 per hour.

 

[snooze]

Thanks alex, I called a company to strike up a partnership, the conversation was going good until I tell them the site was a group effort and we are not limit. I haven't back from then since.

 

[accelerator]

Why I am thinking this way. I get the feeling that businesses are not taking me serious when I tell then I am not limited.

In what way aren't they taking you seriously? Can you give an example?

Rgds

 

[alex]

They possibly wanted the security of seeing your accounts or knowing you were capable of the legal requirements. With me several suppliers simply didn't want to deal with me unless I was limited.

 

[Retired_member41]

Seems mad when in 5 minutes for less than £20 anyone can set up a ltd company.

Call them back. Believe in yourself and they will listen. It may just be the case you didn't communicate with them properly. If you can't do it get someone else to call for you.

I'm guessing the only time you would really have a problem is when you trade under your own name. Or when they only deal with people established for a few years. Quite often this must come across as a brush off.

If you believe you and they can do business just ask for different terms in the short term.

Stick with it.

 

[Edwin]

Seems mad when in 5 minutes for less than £20 anyone can set up a ltd company.

You could also turn that on its head: since it only takes 5 minutes and 20 pounds, why are they still having to deal with an individual? You have to wear the "corporate hat" to see it that way around I guess...

 

[domainseller200]

You could also turn that on its head: since it only takes 5 minutes and 20 pounds, why are they still having to deal with an individual? You have to wear the "corporate hat" to see it that way around I guess...

I think Caz referring to being a Ltd company doesn't count for much, as anyone can do it for £20

 

[Retired_member41]

I think Caz referring to being a Ltd company doesn't count for much, as anyone can do it for £20

I was yes. And I was also as I'm pretty certain I wrote above. That if you have anything to offer as a business partner you should at least know why they won't deal with you. Your friends on acorn may give advice but it's you who has to find out.

 

[Frog]

Depending on the circumstances I'd rather deal with an individual than a ltd company. The former can't just morph into an identical copy overnight and leave all its invoices unpaid and carry on as if nothing happened, the latter can...

 

[DomCollect]

Ltd

Simple answer, will being limited increase your net income now or in the future?

I have owned ran and sold three companies and there are some bookkeeping advantages as Alex mentioned but i was only limited in one of them, my bookkeeper asked me that question.

 

[Edwin]

I think Caz referring to being a Ltd company doesn't count for much, as anyone can do it for £20

Yes, I understood that. I was pointing out that for some people there's reassurance in dealing with an Ltd company, possibly coupled with suspicion as to why somebody's not incorporated already when it's so cheap and easy to do.

 

[namealot]

I set up plc in 2000 and numerous ltd the biggest mistake I made was not getting the right info at the start and like many other’s thought why waste my hard earned cash on specialist accountant etc I could buy stock advertising etc instead it has cost me lots more …

The better the advice you get at the start does pay dividends in both long and short term… I would say spend at least a £1000 finding things out..? Any good or even half good specialist would save you that from day one...

Don't think Being PLC or LTD ever really bought in any extra business directly they did open some doors but closed others too...

 

[fish]

this may help, they can also advise you personally

 

[snooze]

Thanks all for your input well appreciated.

I wanted to go limited, because I think I could use it to approach the big players in my niche to strike up strategic patnerships.

I think I will continue as a cottage industry for a little longer, and do it when the ventures can take care of the costs.