Company Formation

victoriaK · #1 (**permalink**) 30-06-2008, 21:27

The more I get into my business the more I'm wondering should I register my business as a company, any advice would be greatly appreciated.

Peter W · #2 (**permalink**) 30-06-2008, 21:39

There is a lot to consider, and it depends on your individual circumstances, but this page gives an overview of the main issues:

http://www.brighton-accountants.com/company.htm

Let us know if you have got any further questions.

Calibre Designs · #3 (**permalink**) 30-06-2008, 21:46

Not to forget whether or not you should be registered for VAT..

Peter W · #4 (**permalink**) 30-06-2008, 21:55

Sole traders and limited companies are subject to exactly the same VAT laws.

victoriaK · #5 (**permalink**) 30-06-2008, 22:06

I havent a clue even more. I also thought childrens clothing was zero rated for Vat

Peter W · #6 (**permalink**) 30-06-2008, 22:09

Quote:

Originally Posted by victoriaK

I also thought childrens clothing was zero rated for Vat

That is correct.

In most cases, VAT is only relevant if you want to split a business into 2 parts - one to sell to other VAT-registered businesses, and one to sell to the general public.

In a nutshell, you should probably become a company if you are earning over £25,000 per year from your business.