Setting up a Limited Company

[PlumbersMate]

Wanting to do this to secure the company name that I want and then just leave it dormant. Do I need a different address as been looking online and it's saying you can't have your home address as your business address? That right or is there a way round it? Thanks

 

[Ray Stafford]

A limited company has to have a registered address, but there is no reason from company law perspective why that can't be your home address. It might cause a problem with your landlord if your lease precludes running a business from the property.

Lots of small companies use their accountants or solicitors address as registered office, particularly if they move a lot, or if their mail is not secure (like in some flats). Even a dormant company will get mail - I haven't had one for a while, but when I did, I had to fill in a declaration once a year to say it wasnt trading but i wanted to keep it.

 

[PlumbersMate]

Just trying to do it now and if you select service address same as office address then the directors address can't be the same?! Hope that makes sense

 

[Ray Stafford]

Sorry, I haven't ever used the online service.

 

[lame plumber]

seems a total waste of time and money, omho more important to have control of the name online, 18 notes for 2 years or about 80 for 10 years via nominet.

 

[mfgs]

If you earn over 20k a year it makes more sense to be limited company and pay yourself the highest amount without any tax due and then take dividends. You will be better off financially as you pay less tax, more paperwork though and a good accountant needed.

 

[PlumbersMate]

seems a total waste of time and money, omho more important to have control of the name online, 18 notes for 2 years or about 80 for 10 years via nominet.

£15 to secure a name so nobody can copy it isn't waste of money IMHO

 

[PlumbersMate]

If you earn over 20k a year it makes more sense to be limited company and pay yourself the highest amount without any tax due and then take dividends. You will be better off financially as you pay less tax, more paperwork though and a good accountant needed.

Does that mean charging VAT also?

 

[MOSSEP]

I think at £20k a year I would still stay a sole trader. Its a lot of hassle running a LTD company with a very large increase in accountant bills, self assessment forms to still fill out, difficulty in getting a mortgage if you need one for the next 3 years, increased paper work your behalf and a host of other issues. Once you get your head around it its not too bad but I think you need to be earning a fair bit more than £20k to get any real benefit.

 

[MOSSEP]

Oh, don't forget a big increase in van insurance as well as you will not have built up a no claims bonus for the company - I was unaware of that and it hits hard.

 

[lame plumber]

£20k is way to low to bother going ltd

 

[mfgs]

Does that mean charging VAT also?

No, not if you are still under the VAT threshold.

£20k is way to low to bother going ltd

Its all about being tax efficient, at around the 20k mark it becomes more tax efficient to be a ltd company.

 

[MOSSEP]

No, not if you are still under the VAT threshold.




Its all about being tax efficient, at around the 20k mark it becomes more tax efficient to be a ltd company.

Im not certain, but I would think that at £20k, the relatively small amount you save in tax would be far outweighed by the increased costs in running the Ltd company

 

[PlumbersMate]

I just want to set one up so I can protect the name, I'd leave it dormant until I had no choice tbh

 

[cr0ft]

I set up a limited company from the start, mainly as my vision was always to grow a company which employed staff down the line and I felt it was the best structure to do that in. I am not sure there are many tax benefits till you would be getting charged 40% tax if you were self-employed. At that stage you would be mad not to convert over to a limited company as your tax liability would be 20% normally.

If you are looking at it primarily from a tax avoidance perspective it's not worth bothering with until that point.

As far as I am aware, setting up a Limited company doesn't protect the name, only that name with Limited or Ltd after it. Nothing at all to stop someone setting up a Sole Trader company called Dripbusters for example. Now if they use our logo that's another thing, as it's copyrighted.

 

[PlumbersMate]

I set up a limited company from the start, mainly as my vision was always to grow a company which employed staff down the line and I felt it was the best structure to do that in. I am not sure there are many tax benefits till you would be getting charged 40% tax if you were self-employed. At that stage you would be mad not to convert over to a limited company as your tax liability would be 20% normally.

If you are looking at it primarily from a tax avoidance perspective it's not worth bothering with until that point.

As far as I am aware, setting up a Limited company doesn't protect the name, only that name with Limited or Ltd after it. Nothing at all to stop someone setting up a Sole Trader company called Dripbusters for example. Now if they use our logo that's another thing, as it's copyrighted.

Oh ok I didn't know that it's pretty much the only reason because I want the name to myself! Is it expensive to copyright your logo?

 

[cr0ft]

This is the place to look into it all: -

http://www.ipo.gov.uk/types.htm

You can trademark certain names as well, that is how you would do it if you are worried about someone stealing a trading name. Copyrighting is free, there is a process you have to follow when the work is completed and it's always worth checking with whoever designs your logos whether they will transfer the copyright or not. If not then I suggest using another company.

 

[PlumbersMate]

This is the place to look into it all: -

Intellectual Property Office - Types of Intellectual Property

You can trademark certain names as well, that is how you would do it if you are worried about someone stealing a trading name. Copyrighting is free, there is a process you have to follow when the work is completed and it's always worth checking with whoever designs your logos whether they will transfer the copyright or not. If not then I suggest using another company.

Thanks Croft top level advice as always