Simon C

I want to set 1 up, but don't know if what I want to do is legal.

Basically, I want the company to own nothing except the website, and to rent all the equipment off me. Mainly so if the business fails, I don't loose the equipment.

ChefDude

Go talk to an accountant Simon. A limited company sounds your best bet and they will be able to advise you.

EVOLUTION

have faith and make it work mate.


doesnt sound to me like you have much cnfidence in succeeding.

Simon C

Would you want to loose 14k's (and growing) worth of kit you've paid for yourself if it goes **** up???

Simon C

Already thought about that, but how to find a good 1? Suppose 1 option is use the accountant dad uses, but that means I'm 140 miles away from him.

ChefDude

can't you have an initial meeting over the phone?

Jay_bee

iTrader: (1)

As has been said, the first place to start is an accountant (the first visit should be free). They will be able to give you the best advice. If you dont know of a good one or know anyone that has their own business then just have a look through your Yellow pages and go and speak to a few of them. You'll get a feel for who you are comforatable with and it shouldnt cost you anything for an initial chat.

Going Ltd can be quite a task (not to get a ltd but running one) theres lots of paperwork/redtape and you'll need a company secretary.

Be prepared to make sacrifices, if you arent then getting your own business up and running wont be for you.

I take it you arent looking for any kind of business loan etc then?


Jeff.

ChefDude

in my 10 years of running a ltd company, the most helpful people for cutting corners and getting things sorted were





...the Inland Revenue!

Whenever I had probs, they'd stay on the phone and help me get stuff sorted. when my accountant said i couldn't claim bike leathers, boots and helmet for a company motorbike, the inland revenue said, "well you need protective clothing! of course it's expensable."

it is a responsibility to run a company, but there's lots of help out there. if you don't gross more than 50K you won't need to vat register. i assume you're not paying an employee, so no PAYE. probably about 4 forms (excluding your year end) during the year.

Simon C

Why didn't I just use my name to do all this instead of beign known as focuslive, grrrr.

Jay_bee, nope, not looking for any startup loan or anything, I own the kit I use now and will continue to do so.

I own the kit outright, inc the website at the moment.

My biggest problems I can see are at the moment I'm employed by another company (but not for long), and I am known as I said by another name. So as it stands the wouldbe company would own nothing.

TopBanana

Yes you can do that, so long as the rent is a reasonable amount. Why bother charging any rent at all though? It would still be taxable income.

Simon C

Errrr it helps offset the quite staggering cost!!! Then allows me to buy new kit, I'm very quickly approaching the level of "investment" that I've set my cap at.

Jay_bee

iTrader: (1)

I cant see that the company owning nothing being a problem.

If you dont need any finance/investment, why the concern? If it goes pear, you've lost nothing as you'll still have the equipment?

As for paying yourself from your company for your equipment... sounds a bit crazy to me unless you are planning on making it like a directors loan to the company?

ChefDude

he's after the limited liability.

the client company won't have any recourse on Simon personally if his company defaults.

Simon C

Not that it should, after all its not going to owe anything.

However if I'm right, the copyright issue raises its head if there is no deffiante link, and trading as a name that itsn't mine can produce problems.

Also means if teh company gets sued, the company takes the brunt (financial and legal) not me personally.

Jay_bee

iTrader: (1)

My point entirely.

It sounds like you should schedule a meet with a solicitor sooner rather than later. Your accountant will be able to recommend you one.

TopBanana

Just pay yourself the normal way then... it doesn't have to be for equipment rent. You'll just make your tax returns more complicated!