Caution on new client in liqidation with a second limited company

Hi have been approached by a new client who has one company in liquidation (A) - that has been challenged by a creditor. He has a second limited company (B) that he wants me to close. We Will call A & B

I am reluctant to take on this client as I have a bad feeling but also I am not 100% sure as to what I need to be looking out for and the procedure for doing this?

Would it be a straight forward closure of company (B) or would I need to take into consideration the 1st limited company (A) that is in liquidation ( both companies sole director) He has no debts on the second company.

I also believe he intends to go personally bankrupt after I closing the company. (This has not been confirmed). He has stated that he just wants to be Self-Employed going forward

Please could you advise me of the things I need to look out for or the questions I should be asking to safeguard myself that this client is not doing anything wrong

Many Thanks


Comments

  • MonsoonMonsoon Font Of All Knowledge Posts: 4,071FMAAT, AAT Licensed Accountant
    If you have a bad feeling, trust it. Say no.

    If you have a bad feeling and you're also not sure what you need to do, then DEFINITELY say no.

    Walk far away and enjoy your peace of mind!
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