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Converting Sole Trader business to Limited Company

 
 
Charlie Brooker
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      10-28-2007, 11:30 AM
Hi,

I've been trading for the last 2 years as a sole trader, now I'm about
to setup a limited company specialising in exactly the same areas of
business activity. Is it possible to convert my existing business bank
account at HSBC from sole trader account to the limited company
account using the same account number and sorting code? Will they
honour my credit history?

Is it possible for limited companies not to register for VAT?

If I employ myself as the sole director at the limited company earning
around 1000pm gross, how much less will I get compared to the existing
sole trader business? How being employed at a limited company is
better than being a sole trader in terms of national insurance,
benefits and future pension? I'm 27 years old now.

Can you state any cons and pros for winding up the sole trader and
acting as a limited company?

Thanks for any hints,
chrl

 
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Troy Steadman
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      10-28-2007, 12:09 PM
On 28 Oct, 11:30, Charlie Brooker <(E-Mail Removed)> wrote:
> Hi,
>
> I've been trading for the last 2 years as a sole trader, now I'm about
> to setup a limited company specialising in exactly the same areas of
> business activity. Is it possible to convert my existing business bank
> account at HSBC from sole trader account to the limited company
> account using the same account number and sorting code?


No, the whole point is that a Ltd Company is an individual in its own
right.

> Will they
> honour my credit history?


Yes.

> Is it possible for limited companies not to register for VAT?


You need to eplain what business you are in and what sort of turnover
you have. Generally the thresholds for Ltd and ST work out the same.

> If I employ myself as the sole director at the limited company earning
> around 1000pm gross, how much less will I get compared to the existing
> sole trader business? How being employed at a limited company is
> better than being a sole trader in terms of national insurance,
> benefits and future pension? I'm 27 years old now.
>
> Can you state any cons and pros for winding up the sole trader and
> acting as a limited company?


If somebody sues the company you get to keep your house, is the most
obvious "pro".

> Thanks for any hints,
> chrl


If you were to say what trade you were in it would sa

 
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Charlie Brooker
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      10-28-2007, 02:46 PM
On Oct 28, 1:09 pm, Troy Steadman <(E-Mail Removed)> wrote:
> If you were to say what trade you were in it would sa


Troy, much appreciation for this post.

With regards to the nature of my business - I am a retailer in the
software/computing industry.

 
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Troy Steadman
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      10-28-2007, 03:18 PM
On 28 Oct, 14:46, Charlie Brooker <(E-Mail Removed)> wrote:
> On Oct 28, 1:09 pm, Troy Steadman <(E-Mail Removed)> wrote:
>
> > If you were to say what trade you were in it would sa

>
> Troy, much appreciation for this post.
>
> With regards to the nature of my business - I am a retailer in the
> software/computing industry.


1) If you are selling to businesses you want to be registered for VAT.
2) If you are selling to the public you *don't* want to be registered
for VAT.

Maybe you do a mix in which case it would be handy for there to be two
businesses. One might be (say) a Ltd Co, serious enough to deal with
corporate clients, which of course you would register for VAT from the
outset.

The other completely separate buisiness you might operate as a Sole
Trader and not register it for VAT unless you have to.

These things are best planned in advance and can be difficult to
organise retrospectively.

 
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Charlie Brooker
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      10-28-2007, 03:39 PM
On Oct 28, 4:18 pm, Troy Steadman <(E-Mail Removed)> wrote:
> 1) If you are selling to businesses you want to be registered for VAT.
> 2) If you are selling to the public you *don't* want to be registered
> for VAT.


Thanks for your reply. I mainly sell to the public, so that I think I
will not register for VAT until I reach the threshold.

 
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PeterSaxton
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      10-28-2007, 06:19 PM
On 28 Oct, 12:09, Troy Steadman <(E-Mail Removed)> wrote:
> On 28 Oct, 11:30, Charlie Brooker <(E-Mail Removed)> wrote:
>
> > Hi,

>
> > I've been trading for the last 2 years as a sole trader, now I'm about
> > to setup a limited company specialising in exactly the same areas of
> > business activity. Is it possible to convert my existing business bank
> > account at HSBC from sole trader account to the limited company
> > account using the same account number and sorting code?

>
> No, the whole point is that a Ltd Company is an individual in its own
> right.
>

Banks will change the name on an account and retain the sort code and
account number.

Peter

 
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DoobieDoo
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      10-29-2007, 09:41 PM
"Charlie Brooker" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed) oups.com...
> Hi,
>
> I've been trading for the last 2 years as a sole trader, now I'm about
> to setup a limited company specialising in exactly the same areas of
> business activity. Is it possible to convert my existing business bank
> account at HSBC from sole trader account to the limited company
> account using the same account number and sorting code? Will they
> honour my credit history?
>


Ask your bank. They know more about you than any of the so-called experts(1)
on here.
Why haven't you asked them already? What are you afraid of hearing?

(1) Definition of expert: Ex = something that has been : spirt = a drip
under pressure


 
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sthomas@ukaway.co.uk
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      10-30-2007, 07:58 PM
On Oct 28, 12:30 pm, Charlie Brooker <(E-Mail Removed)> wrote:
> Hi,
>
> I've been trading for the last 2 years as a sole trader, now I'm about
> to setup a limited company specialising in exactly the same areas of
> business activity. Is it possible to convert my existing business bank
> account at HSBC from sole trader account to the limited company
> account using the same account number and sorting code? Will they
> honour my credit history?
>
> Is it possible for limited companies not to register for VAT?
>
> If I employ myself as the sole director at the limited company earning
> around 1000pm gross, how much less will I get compared to the existing
> sole trader business? How being employed at a limited company is
> better than being a sole trader in terms of national insurance,
> benefits and future pension? I'm 27 years old now.
>
> Can you state any cons and pros for winding up the sole trader and
> acting as a limited company?
>
> Thanks for any hints,
> chrl


Hi Charlie,

I did the exact same thing this year with HSBC. You will not be able
to keep the same account for the LTD company. Reasons to change are
related to tax and liability.

Steve.

 
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Charlie Brooker
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      10-31-2007, 12:16 PM
> Ask your bank. They know more about you than any of the so-called experts(1)
> on here.
> Why haven't you asked them already? What are you afraid of hearing?


Thanks for your reply. I always tend to ask people around about their
experiences before I forward an official application to the bank. I
don't trust those consultants ant the phone, you simply cannot rely on
what they say. I hope you agree.

 
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Charlie Brooker
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      10-31-2007, 12:17 PM
Thank you Steve, this was helpful!

> I did the exact same thing this year with HSBC. You will not be able
> to keep the same account for the LTD company. Reasons to change are
> related to tax and liability.
>
> Steve.



 
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