Which Corporate type should I pick? (UK Business)

[Odysseus M Jones]

I need to take card payments.

To take card payments I need a business bank account.

To get a business bank account I need to provide the registration No. from Companies House.

The business is me and my wife to start with.

It's B&M, we have to get insurance, fire, public liability etc regardless of the corporate structure.

Essentially it's either Ltd or LLP to get reg number.

I just want the simple way with minimum admin, and ongoing expense of course.

My thoughts:

If limited, aren't we both employees?

In which case, I'd need employer's liability insurance, payroll, NI.


If LLP, we don't need those, but I'm not sure how much admin is involved.

Is there anyone with experience of these corporate types who can share their wisdom?

Thanks in advance.

 

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[Doug-Parker]

Hi @Odysseus M Jones , I also have a Ltd company in the UK. First thing is, if you have any doubts - speak to a reputable accountant. they should be able to steer you in the right direction.

In relation to your points though:

1. Yes, you will need insurance for whatever you're doing and based upon premises/liability/indemnity etc.
2. If you have a Ltd company - I would say it's likely you and your wife will be directors. If you are looking to take a wage from the company then yes you'll need payroll numbers, NI, tax etc. Again - get a good accountant.
3. I don't have experience of LLP but I do know that this is where the 'entity' is based upon the individuals themselves, as opposed to a Ltd company where it's an entity unrelated to the people running it (i.e. it can be sold more easily than an LLP). An accountant should be able to advise you.

 

[Leo Hartas]

I've had 3 Ltd companies over the years even though I've really been a sole trader, or with one other operator. Everything Doug says is right and I'd also add that as Ltd you have limited liability so if your venture goes south your house is not under threat. Also, other companies, suppliers, etc. treat you more seriously. If you are buying in supplies and services consider going VAT registered and do the VAT returns yourself. It's quite easy and it forces you to have some involvement in your accounts as you have to update them every 3 months instead of once a year with regular tax.

The only downside is you do need an accountant and the accountancy costs will be about double. Setting up a Ltd is very easy and quick to do yourself directly through .gov. Watch out for companies offering to do it for you, for a price.

 

[Odysseus M Jones]

I've gone with LLP.

Primarily because of the interminable earache I'd get if I didn't (joys of partnership with a partner)

And I can use the corporate jet for private use.
Plus we don't have to pay National Insurance.

Not sure if I can use company money on the roulette tables though.
We'll see come first annual returns.

I suppose I can always add a limited company as a partner later if we decide to go for world domination.

Next is bank account to get card payments and ching ching ching watch the cash roll in.

In the meantime I'll put on my graphic designer hat for the business signs.

The joys of entrepreneurship.

 

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