Changing from sole trader to company

T

TomThumb1

Registered User
Messages
10
Hi,
Background: I came home from travelling in June 04 and went about setting up a sole trader video camera business. However, after doing a business plan I realised that there was no way I could pay off my debts and setup up the business at that time. I went back to working in IT full time for the last three years. I have since done the odd job and have built up a profile in covering weddings. I did a lot of friends weddings and asked to do more and more.....I was doing the work for very little money because I wanted to build up my portfolio.......

Problems: I registered for Vat and as a sole trader back in 2004. However, I haven't filed any returns in that time. I returned nil a couple of times. I want to close this sole trader business down if possible.

I want to go live with my video business next June. i am taking enough bookings for next year to fund my business. I am currently working on a new business plan and have increased my advertising to boost business sales. I am currently doing a start your own business course. I have decided that it would be better if I setup a limited company rather than as a sole trader.

I want to start a fresh and clear everything with the revenue and the vat man but I am not sure where to start.

I know what I did was wrong and stupid and I have learned it is not away to run a business but I want to change asap. I have started properly invoiceing people in Oct this year and I want make the business legitmate going forward. Any advice on how I can get out of this mess and set up a company properly would be appreciated. Thanks in advance for your assistance.

I understand how to setup a company etc....But I want to know how to transfer from being a sole trader......
Tom
 
You will still have to sort out your VAT affairs for all periods to date (including filing of outstanding returns (even if nil liability) and arranging de-registration formalities with Revenue if necessary. Opening up a limited company won't in itself make these problems go away.

I think you would be unwise to open a limited company if this is your only reason for doing so. You may need to engage professional advice in order to explore your options for the future and clear up the VAT & any other tax issues outstanding.
 
I am not changing from a sole trader to a company to get away from my past. I am moving away from it because after learning the differences between the sole trader and company it would make more econmical sense for me to setup as a company.
I didn't know this 3 years ago because of my own ignorance.
Liam
 
You must log in or register to reply here.
Back
Top