Benfleet A1
Hector Of The House🦐
A question for the business and legal minded chaps and ladies on here who I know are plentiful. My previous setbacks have been overcome but what is better, Sole Trader or Limited Company.
A question for the business and legal minded chaps and ladies on here who I know are plentiful. My previous setbacks have been overcome but what is better, Sole Trader or Limited Company.
Limited company 100% mate.
Both for taxation reasons and also if the business gets into trouble.
From a tax point of view a Limited Company can pay dividends to its directors as and when it sees fit. The main benefit of this is that dividens dont attract a NI contribution (from memory) where as a sole trader in effect is treat as a person for the purposes of tax.
Think you will also find that if the business goes bust a limited company director is limited to the extent that the business can be folded if you have no more money where as I think a sole trader (in effect being you as a perso trading) can be perused for alot more
That was my understanding of it a few years ago when I went S/E.
How about a Limited Liability Partnership :winking:
Less paperwork? Really? Of sole trades, ltd co's and LLP's, LLP's have by far the most if done properly...I'd go with this, more protection, less paperwork!
It almost certainly would if they had PG'sDepends what you're doing and what it's chances of failing are (sorry, I may have missed earlier threads).
My best mate set up a shop in Southend as a Partnership maybe eight or nine years ago. They shut their doors after two years and he was still paying half of salary each month out in debt repayments until recently. Had he been set up as a Ltd Co none of that would have happened.
It almost certainly would if they had PG's
ps Am pretty impressed by the answers so far. I think it goes to show that Essex has a far more entrepreneurial attitude than many other counties.
Good luck GHG.
ahem...:happy:Maybe people born in Essex. Me, DtS and Kent Shrimper all make money outside the county. :winking: