Incorporation advice
System
Posts: 100,534 🤖 Admin 🤖
Would like some advice....
I know very little about incorporation. I have read some previous threads but am a tad lost.
My partner is a website designer. Currently between us we have less than 2 pennies to rub together so costs are an issue.
He has a website design business which is not yet breaking even.
He has been busy working on 2 projects which we hope will be the big ones.
One selling adverts to European and international companies with a turnover of about £55'000, profits of about £20k. (hopefully).
The other is trading internationally, with a life of only about 1 year. This will have a turnover of excess of £1m, profits of about £200k.
All of these are being made on a borrowed laptop sat on a chair that's falling apart! We literally have no budget.
He is currently a sole trader. We would like to incorporate the businesses. But I don'ty know when would be best, and should we whack all the sites/businesses under one ltd company roof or separate each business in to separate comps?
The reason I am unsure when to incorporate is - i'd like to leave it as late as possible; if the businesses flop, we can't afford hefty acocuntancy fees for the ltd comp accounts.
Any advice greatly appreciated.
I know very little about incorporation. I have read some previous threads but am a tad lost.
My partner is a website designer. Currently between us we have less than 2 pennies to rub together so costs are an issue.
He has a website design business which is not yet breaking even.
He has been busy working on 2 projects which we hope will be the big ones.
One selling adverts to European and international companies with a turnover of about £55'000, profits of about £20k. (hopefully).
The other is trading internationally, with a life of only about 1 year. This will have a turnover of excess of £1m, profits of about £200k.
All of these are being made on a borrowed laptop sat on a chair that's falling apart! We literally have no budget.
He is currently a sole trader. We would like to incorporate the businesses. But I don'ty know when would be best, and should we whack all the sites/businesses under one ltd company roof or separate each business in to separate comps?
The reason I am unsure when to incorporate is - i'd like to leave it as late as possible; if the businesses flop, we can't afford hefty acocuntancy fees for the ltd comp accounts.
Any advice greatly appreciated.
0
Comments
-
Re:Incorporation advice
Hi Amanda,
I understand you don't want to incur any more costs than you need to, but it does sound as if you should be taking the advice of an accountant who has a detailed understanding of your partner's business activities.
Many accountants will offer a free first consultation, and I would strongly recommend that you take up such an offer. This will help you to understand what the options are and how they relate to your specific circumstances.
If you go on to appoint an accountant, you will only have to pay for the work he does, and with your AAT qualification you may be able to do most of the work yourself.
I'm not suggesting you take the free adivce and run, just that you keep a good tidy set of books etc, do some of your own research and pay accountant's fees for any statuory work you can't cope with on your own.
0 -
Re:Incorporation advice
That is really good advice Sheelagh, well worth looking at Amanda (or Anna).
Good luck in what you decide to do.
Annette0