Starting a LTD Company?

[just_jue]

Hi,

 

I have been a sole trader for the last 10 years and need some advice.

 

Everything is fine with my business but I want to start another company and register the name.

 

The earnings are way below the VAT threshold.

 

Am I allowed to register the new company (i.e. CC LTD) then leave it dormant and still trade as ( CC ) ?

 

Also will there be a problem that is 1996 I was declared Bankrupt.

 

Thanks

 

JJ

[Sillywizard]

To answer the last question first, bankruptcy in 1996 would not disqualify you from being a company director. It's also entirely legal to register a company name and then not trade although failure to submit accounts, even nil ones, and company returns will get the company removed from the register.

[just_jue]

Thanks for the information.

 

I did some reading up about companies and dormant accounts so hopefully got my head around it.

 

JJ

[adridude]

Just a heads up..

 

When you register the company, even if the HMRC has you listed as "dormant" you STILL need to contact companies house and get it registered too. This will stop the need for sending in yearly returns & accounts etc.... The moment you start trading, in any way, you need to contact both the HMRC and Companies House.

 

If this is your first LL company, just remember that you are NO LONGER self employed but you are now an EMPLOYEE as a Director of CC Ltd with shares. The HMRC, the Council, and other people like Utility companies etc... don't know the difference.

 

If they ask for your self employment books, you DON'T have to send them in for CC Ltd. it would be like asking an employee of Tesco's to send in the books for Tesco's

 

What the company earns is NOT what you earn, so they don't need to know. HOWEVER, what you earn from the company, even in the form of benefits i.e. fuel, payments towards electricity at home etc... are classed as an income and needs to be listed as such.