Hi,
This is a bit of a mix of questions so hopefully they'll make sense.
I'm forming a limited company at the moment and the documents have been sent to CRO for formation.
I expect to begin trading in early September, but have been advised by an accountant to begin trading as a sole trader. The reason for this is because I'd expect to make a loss in the first 4 months due to startup costs, and could offset that loss, as a sole trader, against my income from my full-time job.
Then apparently I can begin trading as a limited company next year with no problems. Also I was advised to register the trading name as a sole trader and 'sell it on' to my limited company when the time comes to trade under the company.
First of all I'm not sure if this is the correct way of doing this. Because it came from an accountant I'm presuming its all above board.
Secondly, I have to go ahead and sign a lease for a premises shortly.
If the above is all above board, I'm now not sure whether to sign the lease under my sole trader or limited company name.
I need to have a VAT number so that I dont pay VAT on the lease. So now whilst I'm almost over the line for my start-up, this has added more confusion for me!
If it all makes sense, any help would be greatly appreciated!!
Thanks
This is a bit of a mix of questions so hopefully they'll make sense.
I'm forming a limited company at the moment and the documents have been sent to CRO for formation.
I expect to begin trading in early September, but have been advised by an accountant to begin trading as a sole trader. The reason for this is because I'd expect to make a loss in the first 4 months due to startup costs, and could offset that loss, as a sole trader, against my income from my full-time job.
Then apparently I can begin trading as a limited company next year with no problems. Also I was advised to register the trading name as a sole trader and 'sell it on' to my limited company when the time comes to trade under the company.
First of all I'm not sure if this is the correct way of doing this. Because it came from an accountant I'm presuming its all above board.
Secondly, I have to go ahead and sign a lease for a premises shortly.
If the above is all above board, I'm now not sure whether to sign the lease under my sole trader or limited company name.
I need to have a VAT number so that I dont pay VAT on the lease. So now whilst I'm almost over the line for my start-up, this has added more confusion for me!
If it all makes sense, any help would be greatly appreciated!!
Thanks