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Converting from sole trader to limited company - A Guide.....

Posted by Gary RK on January 25, 2014 at 3:45pm in Business

Useful Guide for any sole trader who is considering (or, maybe has never considered) changing their business entity to a Limited Company.

Explains the basics, some pros & cons and provides a business calculator to guide you in making a decision.

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Tags: company, limited, sole, to, trader
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  • Ed Fairman January 25, 2014 at 4:12pm

    Thanks for that link. It's not always clear which way to go. Anything that spells it out clearly is of great benefit, the business world seems to be full of jargon and over complication to my mind.

  • Matt Johnson January 25, 2014 at 4:24pm

    Thank you very much for this!! highly useful

  • PRO
    Brian www.mibservices.co.uk January 25, 2014 at 4:49pm
    Useful mate, we're going ltd this April.
  • Neil Petrie BSc Landscape Mgt January 25, 2014 at 8:11pm
    Yup, us too. Have been putting it off for ages but makes huge amount of sense financially.
  • Bespoke Lawncare January 26, 2014 at 1:43pm

    I registered my company name with companies house when I started trading however I have left it dormant just sending in nil trading figures at the end of each year.
    Due to turn over employing staff and company all in all moving forward at a steady pace I will be converting from sole trader to LTD company in April this year (Account advices me to)

  • PRO
    Gary RK January 26, 2014 at 1:46pm

    I would really recommend that process, along with securing possible domain names. I know of several instances where people have been unable to register their 'Trading as' name at companies house, especially where you are using first names or location based business names - ie someone beat them to it....

    Bespoke Lawncare said:

    I registered my company name with companies house when I started trading however I have left it dormant just sending in nil trading figures at the end of each year.
    Due to turn over employing staff and company all in all moving forward at a steady pace I will be converting from sole trader to LTD company in April this year (Account advices me to)

  • Matt Johnson January 26, 2014 at 1:49pm

    How do you go about registering your trading name at companies house? is there a guideline anywhere or a website i can follow

  • PRO
    Gary RK January 26, 2014 at 1:55pm

    You can download the forms from companies house website or via direct.gov, alternatively get your Accountant to do it (highly recommended if you then intend to keep as a dormant company).

    Be aware, there a lots of companies offering to do it for you, some are legit and charge a fair price, some are 'scams' and charge disproportionate fees

  • Bespoke Lawncare January 27, 2014 at 2:08pm

    Matt the first thing you need to do is check if the trading name is taken on this site
    http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo

    If you put Johnsons landscaping in you will see someone is already trading under a the name (JOHNSONS LANDSCAPING AND GARDENING SERVICES LIMITED)however you could possibly use Matt Johnson landscaping Ltd ring and ask before using an accountant to find out.
    Matt - Johnsons Landscape Design said:

    How do you go about registering your trading name at companies house? is there a guideline anywhere or a website i can follow

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