Need some advice - Tax + Registering as a Company

check out this thread

Registering a limited company in the U.K. is fast, easy and cheap. Just Google "company formation" and you'll get tons of services doing basically the same thing for as low as 35 pounds.

You can save money and time by buying one "off the shelf" meaning it's already been registered. You choose an available name from the list and it will be transferred to your name. You're up and running with it the same day. You can change the name later if you wish.

Having said that, there's nothing stopping you from continuing as a sole trader. Until you get into serious money it really doesn't make that much difference.

Except that one advantage with a limited company is that you are personally protected from your company's debts and liabilities... up to a point. Someone in the other thread said you can be held for the debts but this usually only applies to cases of negligence, fraud or criminality. For most practical purposes, individiuals are not liable for company debt... that's why it's called a limited company - it limits your liability.

The disadvantage is with a company you will have to file company taxes. This can be a pain and it usually requires an accountant who will charge you several hundred pounds. But it's a minor cost if you're making good money and well worth the advantages.

Matthew,
My advice would be to ring round a few local accountants. Most will give you a free intial consultation of the best way for YOU to set yourself up and what route to take - sole trader, llc or ltd. It's kinda crutial you get it right from many points of view. If you like the accountant you can engage them to look after your business maybe on a 6 monthly basis to begin with.

Rich

you can consider registering an offshore company

Thanks for the info guys.

The reason I want to do it is mainly for CPA company's. Its to look more pro and you get certain benefits like net 7 payments and higher payouts.