Limited company questions!

[Shyam]

Hi,

My first post - so sorry if it is a stupid question!

I want to open up a new limited company, and rightnow am struggling to think of an actual name for the company (I have a trading name for my business, but want the company name to be something more general!) but I know I want "Media" in it...

My first question is, can anyone have "Media" in their company name, or is it limited to certain types of business?

Secondly, i was having a look around online for the cost of opening the limited company, and prices tend to range form £25 to £100+ - I'm not really sure what I should be looking for? Can someone please explain the differences?

Also, the paperwork invovled after opening a company - is it complicated, something anyone like me could do, or is it best to have an accountant to do it (I know one who will do it all for £100, but would take a few days, and I want to open the company up today...)

Thanks for your help!

[Indizine]

Yes you cna use the word media in the Ltd company name. You can DIY if its a straightforward company set up but if it invoves others, is more complex in any way, etc then best off having an accountant sort it for you, assuming a Ltd company is the best way forward in your siutation, that is.

[Shyam]

Thanks very much for the quick reply.. To be honest I can't make my hand up on whether I should open up a limited company or register as a sole trader?

I know that there are some people who'd be more likely to buy from my company if it was registered..

But I also know that it is ore beneficial to be a sole trader when profits are below £x?

Can someone please explain when it is more beneficial to have a limite company and when not to be?

And do you really end up paying a LOT more tax when a limited company, so much that it is not worth opening one even if you'd get more customers?

Hope that all makes sense! Thanks!

[Indizine]

There is no black and white answer as each person's situation needs to be assessed in full to determine which solution would be best for you, hence the money spent on an accountant to determine this for you who you can confidentially discuss this with, will ultimately save you more than that if you made the wrong choice.

Depending who you are doing busihness with, many companies wont actually mind you not being Ltd; even government contrats dont expect sub-contractors to be Ltd.

It can look more impressive but there are ways and means if thats the only reason for choosing to go Ltd.

You will also have to (likely) pay an accountant to do the year end accounts if this is something you are not expecting to do yourself, and this costs quite a bit more.

[Shyam]

Thanks for the above help! Has anybody got any tips on choosing a company name too? I have a trading name I'd like to definitely use but it's quite specific and want the company name (assuming I go for a limited company) to be more general and leave it open...

Everything I like is taken! My favourite so far is Legacy Media Ltd (but taken).

[Calibre Designs]

You should definitely talk to an accountant. Some offers the first hour free.
Have you tried your local business link for advice?
What kind of business are you trying to get off the ground?
Thanks

[openmind]

I'll put this in bold as it's quite important


Do NOT just plunge in and start up a limited company without speaking to a qualified accountant first!

There are a couple of points about your request that worry the hell out of me...

The fact that you do not know the ins and outs of corporation tax, shareholder dividends, opening companies, submitting returns to companies house etc suggest that you must speak to someone qualified first.

Having Ltd after your company name is not the be all and end all, run incorrectly, a limited company could end up costing you more than your business is worth.

[Every Trade]

Don't do it yourself. I did this by just buying a limited company off the shelf via the internet when I wanted to create a division of my business. It's a nightmare. The paperwork is endless and keeps on arriving. If you have someone who can handle the red tape for you for £100.00 it's money well spent and I'm sure that the amount of time you would spend on understanding the mountain of forms which arrive and continue to arrive and the fines which come with not doing the paperwork on time are worth much more to you than £100.00. I think it's best to stick to what you know and if you're anything like me, spending all your time on companies house paperwork is not your thing. Hope this helps.

[optrix100]

I agree with Every Trade.
Don't do it yourself, and get someone to setup for you. A good place to look is the back of Exchange and Mart magazine, as they have loads of adverts for companies who can set up a same day LTD company for you for about £150. Worth it!