"Company Trading Status"

Discussion in 'Pressure Washing' started by Robster, May 30, 2016.

Advertisement
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Welcome to the UK Window Cleaning Forums.
    Starting or own a window cleaning business? We're a network of window cleaners sharing advice, tips & experience. Rounds for sale & more. Join us today!

  1. Robster

    Robster Member
    Member

    Joined:
    May 27, 2016
    Messages:
    58
    Likes Received:
    10
    Are any of you guys registered as a Ltd Company, or, are you all sole traders, or just self employed persons with no actual "company", or other options that i have overlooked

    Can anyone through there own personal experience shed any light on the pro's and cons of being either or all?

    Thanks Robster
     
    Advertisement
  2. Clisty1989

    Clisty1989 Forum Addict
    Member

    Joined:
    Oct 21, 2015
    Messages:
    675
    Likes Received:
    234
    Green Pro Clean Ltd is the best to talk to as he's been both
     
  3. Robster

    Robster Member
    Member

    Joined:
    May 27, 2016
    Messages:
    58
    Likes Received:
    10
    Ok , thank you.

    Now Mr Green, where art thou?

    Robster
     
  4. Green Pro Clean Ltd

    Moderator

    Joined:
    Jan 20, 2015
    Messages:
    5,154
    Likes Received:
    2,150
    As a 'self employed' person you are automatically a 'sole trader' they are the one and the same. However you can also be a sole trader as a partnership.

    I own a 50% share of my company as a director of a Ltd company and my wife owns the othe 50%, so although we own the company we are also both employees of the company.

    I wont go into the hows and why as I am not an accountant but we earn more money and pay less taxes as a Ltd company.

    (Arrange a consult with your local accountant, they will give you a free 30 minute consult to advise you best)

    Also the Ltd. Stands for 'Limited' as in 'Limited liability' as a Ltd company your liability is limited to the value of the company registration. (In our case £150)
    So my ladder falls over and kills a family of 5 and they can't sue me, they can only sue the company, my home, car, assets etc are protected. You dont get that as a sole trader.

    Also as a Ltd company you are taken more seriously by the bigger firms. Most large contracts go to Ltd companies as sole traders are often concieved by the customer as one man buckt bob operations.
    In the past two weeks we have submitted over £6.5k worth of quotes on just three large commercials. The next two weeks will see more than that going out in quotes.

    Your business credit improves. Over night just by becoming LTD we gained accounts with all our suppliers where as before it was cash up front. Makes no difference to us but if a big job comes in that I need some gear for it is nice to just make a call and not have to worry about paying today.

    Both have pros. Both have cons. I suggest you sit with the accountant and see which is right for you.
     
    • Like Like x 1
    • Informative Informative x 1
    • List
  5. Robster

    Robster Member
    Member

    Joined:
    May 27, 2016
    Messages:
    58
    Likes Received:
    10
    Thank you for that, very interesting ......... i asked because i was thinking Ltd purely for the liability aspect of the business / personal responsibilities.

    The negative side of Ltd that i have to work out is the money, i think im right in saying that it {the money} belongs to the company not you per se. in other words, unlike a sole trader you cant just dip in for personal use whenever you feel like it ............. i will consult an accountant, i just wanted "opinions"

    Thanks again

    Robster
     
  6. Green Pro Clean Ltd

    Moderator

    Joined:
    Jan 20, 2015
    Messages:
    5,154
    Likes Received:
    2,150
    The shareholders own the profits so to speak. The wife and I own 50% each of the business so we own all the profit.

    You will draw the profits annualy in the form of dividends.

    You will also have a 'directors loan account' this is where profit (outside of salaries) is loaned to rhe directors against future dividends.
     
    • Informative Informative x 1
    • List
Advertisement