Starting a limited company

[mumblechum1]

Feels odd to be the one asking questions on Legal!

I have a will writing firm as a sole trader, and wondering whether it would be a good idea to start a limited company.

Looking at the dot gov website it all looks pretty complicated; if you set up a ltd co, did you get an accountant or solicitor to do it, or do it yourself?<br />
Roughly what costs are involved, and what are the big pitfalls?

Thanks

[MrAnchovy]

Setting it up is the easy bit, costs less than £50 from a formations agent - google Company Formations and take your pick. You need an accountant to run the tax and compliance side of things though, costs from £600 (+ VAT) a year for a sole practicioner, twice that for a high street practice and perhaps four times for a national firm.

Pitfalls? Not using an accountant and thinking you can do it yourself .

[mumblechum1]

Thanks Mr Anchovy - it'd be worth the £600 plus VAT per year, I think; having just done my first year's accounts and tax return I know I would never make an accountant!

Will look into the Company formations agency thing. Wasn't sure as a lot of them looked v cheap, and knowing how crap Wills are when written by v cheap people, was a bit wary.

Thanks again

[MrAnchovy]

Yes they are all very cheap - since the Companies Act 2006 with the new, usable, model articles, removal of the objects clause from the memorandum and the introduction of online registration it has essentially become a low added value process.

If you are forming a company with somebody else (other than a family member you are willing to bear the risk of falling out with), you need to have a robust Shareholders Agreement which is probably going to cost a few £1,000s but the company registration part will still only cost peanuts.

I use this lot.

[mumblechum1]

Thanks MrA, you're a star

[MrAnchovy]

Forgot to mention - I usually get a package that includes a printed Certificate of Incorporation. You shouldn't really need this any more as identity checks are all carried out on line but if you do ever need a printed original it costs £15 from Companies House or £50 for same day service. And you can put it on the wall :)

One other thing to mention, domain name squatters check companies house records for new registrations so if you want a .com and/or .co.uk to go with your company, register that at the same time (I use 123-reg or UK2.net).

[mumblechum1]

Thanks. I have registered my domain name already, so assuming that there isn't another company called Marlow Wills Ltd on the day I register, hopefully I'll be ok. I'm just Marlow Wills dot co dot uk now.