Very very green on starting limited company

[Davislove]

As it says, I'm very green on starting a limited company and wonder if PH's could help with some basic questions to aid my research:

How do I 'record' the money I need to start out with? i.e once i've setup my limited company with companies house (limited by shares) and want to get going by using a small pot of money to pay for initial expenses (office, papers etc). Is this income, capital, a directors loan or something else?

Do many people use accountants or accountancy software?

If I wanted to start with someone else, should he also be a director, share holder or employee?

Can you claim as expense things that you also use for your personal use?

Anything else helpful.

cheers

[2 sMoKiN bArReLs]

Eric will be along soon & say see an accountant at the earliest opportunity. He will be correct!

[rustyuk]

I was exactly the same and my advice would be to speak to an accountant.

Mine set up the limited company, making sure all the documentation was in order. They even opened my business bank account.

Worth every penny (for me)

[Mr Pointy]

This may help:
https://www.contractoruk.com/limited_companies

And get an accountant!

[Australiam]

As all those above have said - get an accountant! They help a lot, and as above, have been well worth the money for me.

When it comes to adding another person, you need to think carefully about what you are trying to achieve, and the choices you have. Adding a director is a big decision, not to be taken lightly.

Can you afford to pay an employee? If you can't, then offering a 3rd party a share of the business can be a way to incentivise them.
Are you happy to give away some control of your business?
Are you happy to share the profits with the 3rd party?

These and other questions will all provide the info you need to determine the options, so that you can then pick the best for you.

Lastly - whatever you decide, get it written down. What appears a formality now could help enormously in the future

[Mr Pointy]

If you are staring with someone else one of the most important things you can do is get an agreement on what happens when you want to split up.

[trickywoo]

The first question to ask yourself is whether or not a limited is the right way to go.

Put very simply if you don’t need to limit your personal liability there are probably easier ways to run a business.

[Eric Mc]

Been away for a few days.

As has been pointed out, why does the OP think that he needs to set up a limited company to run a business.

Sometimes it's the right thing to do - but not always.

Speak to an accountant

[Storer]

trickywoo said:

The first question to ask yourself is whether or not a limited is the right way to go.

Put very simply if you don’t need to limit your personal liability there are probably easier ways to run a business.

Very true.
The government have made Ltd Co’s a lot less attractive tax wise over the last few years.

[JapanRed]

I tried to do my accounts for a year when I first set up. Took me forever and probably didn’t do it right. Been with an accountant ever since. They have more than paid for themselves over the years.