Trading As a Limited Company
Joseph Robert Neil James asked:
Many small ‘Self Employed’ business people, shy away from forming a limited company, mainly because they think it is too involved too costly or beyond their capabilities to achieve company Director status. However, many of the ‘Self Employed’ also consider they would lose too many perks by having to declare all their income to the ‘Inland Revenue’, when trading as a Limited company.
A friend of mine who runs his own business, gives me pleasure by just being associated with him. One day I asked him, why he had not registered as a Limited company, his reply was ‘because I have full control of my business, without having to refer to anyone’. By NOT being registered as a Limited company, he could in the future, lose all property he progressively purchased with profits from his successful business.
The average small business is usually controlled by ONE person and his/her - wife/partner, both sharing the day to day decisions controlling and developing their business. They would be ideal for registering as a Limited company, providing they were prepared to declare all their company profit to the ‘Inland Revenue’.
The minimum requirement in the UK for forming a Limited company is ONE person who will act as Director for the company and ONE person who will act as Secretary for the company (The Director cannot also be the Secretary of the company). At least ONE shareholder must be willing to purchase a single £1.00 company share. The shareholder CAN be the company Director or company Secretary.
The ‘Self Employed’ business name you are trading with at present, may not be available to register as a Limited company because the name may have already been registered. This means you would need to consider several trading names, until you find one that has not been registered, as a Limited company.
However, It is NOT wise to appoint your wife/partner as a Director, if it can be avoided but you could appoint he/she to the position of company secretary because if he/she is appointed as a Director, you will experience problems in the future. It is also NOT advisable to appoint your Sons and Daughters as Directors because they will only appreciate their own personal interests and must be allowed to explore their Eager Desires.
Many small ‘Self Employed’ business people, shy away from forming a limited company, mainly because they think it is too involved too costly or beyond their capabilities to achieve company Director status. However, many of the ‘Self Employed’ also consider they would lose too many perks by having to declare all their income to the ‘Inland Revenue’, when trading as a Limited company.
A friend of mine who runs his own business, gives me pleasure by just being associated with him. One day I asked him, why he had not registered as a Limited company, his reply was ‘because I have full control of my business, without having to refer to anyone’. By NOT being registered as a Limited company, he could in the future, lose all property he progressively purchased with profits from his successful business.
The average small business is usually controlled by ONE person and his/her - wife/partner, both sharing the day to day decisions controlling and developing their business. They would be ideal for registering as a Limited company, providing they were prepared to declare all their company profit to the ‘Inland Revenue’.
The minimum requirement in the UK for forming a Limited company is ONE person who will act as Director for the company and ONE person who will act as Secretary for the company (The Director cannot also be the Secretary of the company). At least ONE shareholder must be willing to purchase a single £1.00 company share. The shareholder CAN be the company Director or company Secretary.
The ‘Self Employed’ business name you are trading with at present, may not be available to register as a Limited company because the name may have already been registered. This means you would need to consider several trading names, until you find one that has not been registered, as a Limited company.
However, It is NOT wise to appoint your wife/partner as a Director, if it can be avoided but you could appoint he/she to the position of company secretary because if he/she is appointed as a Director, you will experience problems in the future. It is also NOT advisable to appoint your Sons and Daughters as Directors because they will only appreciate their own personal interests and must be allowed to explore their Eager Desires.