Buy a company online
Discussion
I need to set up an IT consulting company quickly and I am not sure of the pitfalls of buying an off the shelf company. About £80 seems to be the starting price. Can anyine see any pitfalls about going down this route? are there any specific questions I need to ask?
The setting up of a company is someting I need to do ASAP, so any advice would be appreciated.
Cheers
The setting up of a company is someting I need to do ASAP, so any advice would be appreciated.
Cheers
Just to beat Eric to it...setting up a company is the easy part. Who is going to ensure it is administered correctly?
I'm assuming you've just landed your first contract? If you intend to go the Ltd route, then I'd start by finding a good accountant, and they can help you with the setup.
I'm assuming you've just landed your first contract? If you intend to go the Ltd route, then I'd start by finding a good accountant, and they can help you with the setup.
UpTheIron said:
Just to beat Eric to it...setting up a company is the easy part. Who is going to ensure it is administered correctly?
I'm assuming you've just landed your first contract? If you intend to go the Ltd route, then I'd start by finding a good accountant, and they can help you with the setup.
...yep, but this is very much a sideline and I have a complicated set of affairs - this will in effect be my second business, the first is a limited company as well and I must keep the two affairs separate. I'm assuming you've just landed your first contract? If you intend to go the Ltd route, then I'd start by finding a good accountant, and they can help you with the setup.
I'm talking mainly about the finance, compliance and inter-co aspects of running two companies.
It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
Eric Mc said:
I'm talking mainly about the finance, compliance and inter-co aspects of running two companies.
It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
can you see a more pragmatic way of doing it - the two businesses are completely different and realy I do not want to mix their affairs at all. It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
Eric Mc said:
I'm talking mainly about the finance, compliance and inter-co aspects of running two companies.
It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
Not to mention potential associated companies where tax bands are effectively halved etc It always creates a lot of complication - especially if the directors start using Company A's bank account to pay Company B's bills (or vise versa).
Even if they don't, the existence of two companies means
two VAT registrations
two PAYE registrations (and two sets of payroll admin to look after)
two sets of accounts to Companies Act formats
two Corporation tax returns
two sets of accountant's fees (one for each company)
Matters can get VERY complicated if each company has different annual accounting year ends as then the various deadlines based on the different year ends will be cropping up with alarming regularity.
As Eric states, becomes quite complicated, but dependent on many factors
Running two businesses is always more complicated than running just one - even if they are not limited companies. Companies just add further layers of complications.
It can be done - just make sure you are aware of the additional workload involved (and cost) in keeping on top of things.
It can be done - just make sure you are aware of the additional workload involved (and cost) in keeping on top of things.
Eric Mc said:
Running two businesses is always more complicated than running just one - even if they are not limited companies. Companies just add further layers of complications.
It can be done - just make sure you are aware of the additional workload involved (and cost) in keeping on top of things.
Completely agreed.It can be done - just make sure you are aware of the additional workload involved (and cost) in keeping on top of things.
As an MD myself it is enough hassle sorting out all the different deadlines, accounts, forms, and taxes for a single limited company. Even with one company a significant proportion of my time is taken up with such issues, where I could be making money in that time!
Doubling that would just not be worth that for me, I woulnt wish that on anyone UNLESS they have a good accountant to handle all of the above for both companies or an 'in house' finance bod to keep ahead of all the deadlines.
That should be the cost to factor into any plans before going ahead and looking at potential viability.
Thanks for the advice, that nagging voice in the back of my head has won the better of me and I am going to the accountant tomorrow to (hopefully) resolve this for me - or at least help me see the pros and cons.
Thanks for all the advice - it has been very useful and most appreciated.
Thanks for all the advice - it has been very useful and most appreciated.
drivin_me_nuts said:
Thanks for the advice, that nagging voice in the back of my head has won the better of me and I am going to the accountant tomorrow to (hopefully) resolve this for me - or at least help me see the pros and cons.
Thanks for all the advice - it has been very useful and most appreciated.
Thats definately the best way forward.Thanks for all the advice - it has been very useful and most appreciated.
Bear in mind though the 'pros' will be that he can do everything for you, and the 'cons' will be you have to pay for it!!!
Seriously though, as ever, take time to consider the advice with those who have a vested interest in the outcome.
(Not a dig at accountants, advice for business in general!)
Eric Mc said:
Not all accountants will advise clients on the basis of what fees they can extort from the client. In fact, that would be professionally unethical and downright wrong.
The accountant's advice should be what is the correct for the client, not the accountant.
Of course Eric, I particularly mentioned that my comment was not a dig at accountants. The accountant's advice should be what is the correct for the client, not the accountant.
The fact remains that in some industries such as estate agencies, recruitment agencies, or even a car mechanic, there is certainly the situation where the situation which professionally should be recommended to the client does conflict with when and how much the professional gets paid.
From your comments on here - for free I might add - I have no doubt that you have the highest professional and ethical standards.
However, in most business motivational theory may dictate that consciously or subconsciously it is hard to get truly impartial advice from someone who stands to gain either way. Of course the likelihood of this happening if dependant on who you are paying for the service!
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