Comments on: Company vs partnership vs sole trader

By: malcolmcoles

malcolmcoles — Thu, 30 Sep 2010 17:46:56 +0000

There’s nothing I can add to this pros and cons list really …

By: Tereze Bacchus

Tereze Bacchus — Thu, 30 Sep 2010 13:46:37 +0000

Why would you choose a company over a partnership or a soletrader business?

By: malcolmcoles

malcolmcoles — Wed, 25 Nov 2009 13:50:24 +0000

Rob - A Ltd company gives you much more flexibility over when you pay yourself (subject to the minimum wage - you will have to pay yourself something). You can drip feed the dividends in years when it’s best tax-wise.
The costs are higher - but there are also tax savings. An accountant can explain the detail - but at £100k PA, I imagine a limited company will be the best option. Please seek professional advice though - I am not an accountant.

By: rob Strange

rob Strange — Wed, 25 Nov 2009 13:43:46 +0000

Hi , I am a one man consultant. Could go either S Trader or Ltd Co. Choice for me is what will be the best tax saving one, e.g I want to build small office in Garden, but a decent computer etc etc, off set taking people out re Marketing my services etc. I’ll also only be doing this for a couple of years, then stop working. Money pa earned will be about 100K pa. I do not need to spend any money earnt, so if Ltd co, could pay myself minimum ( or nothing )! and take all money out when I close the business. BUT I have no idea if doing that with a Ltd co. end up me paying far less to HRMC, than if Sole Trader, where i presumably pay tax on what I have earned pa. less savings/offsets, etc ( although I do not need to spend any of the money I have reaned during the year )
Any high level advice ? Thx Rob Strange

By: malcolmcoles

malcolmcoles — Thu, 22 Oct 2009 16:19:17 +0000

Hi, Phil - thanks for the compliment. My advice to you is … to talk to an accountant! You could go either way - the way you describe it, I’d have thought a sole trader sounds the best way while you’re very small. But I really would urge you to talk to someone (the accountant I use actually gave me sole trader vs ltd co advice for free when I was deciding which of his services to go for).

Also, I hope you’ve been watching Property Ladder etc - those people who are never on site when property developing always seem to come a cropper on TV…

By: Phil Tate

Phil Tate — Thu, 22 Oct 2009 15:36:06 +0000

Property Development…..

First of all, I have to say that this is a great site set out in “layman” terms and is very helpful!

I’m still not sure which way to go though, so heres my story - I was recently made redundant so actively seeking employment, but also have a lump some of money that I am thinking of using to set up a Property Development Business.

My aim is to start small, buy a property and develop without using any additional finance. This would mean that profits will be small to start, and hopefully increase as things develop. I will be using builders etc to do most of the work, and hopefully find employment for myself in the interim as an employee for another company (whilst my new business grows).

Therefore, as I will be paying others to do the work, is it better to set up a Ltd co., and be sole director and also an employee of another company, or sole trader and employee?

Cheers

By: Family Friendly Working Blog » Blog Archive » Do You Need to Set Up a Company?

Tue, 23 Jun 2009 11:36:48 +0000

[...] here’s some help to find the answers. Check out Setting Up A Business for a great post which lays out the pros and cons of working as a sole trader, partnership or [...]