Set up a ltd company by mistake

[Username52626]

I opened a business account with tide for my eBay sales but I have set up a companies ltd instead of sole trader. Can I close the companies ltd? Really worried about fines I might receive.

It can be complicated to change accounts I’d contact them and see what they suggest. Was it approved, I had to jump through hoops to set up my Ltd company account with Starling.

@FAQs

It can be complicated to change accounts I’d contact them and see what they suggest. Was it approved, I had to jump through hoops to set up my Ltd company account with Starling.

@FAQs I received a letter congratulating me on been a director from companies house and it shows the business on the website

Oh, it’s quite different from sole trader, I have had to set up payroll to pay myself it’s all checked by HMRC, I’d contact them for advice, you might not get any fines because it’s so early in the process. They can be helpful.

@FAQs

Oh, it’s quite different from sole trader, I have had to set up payroll to pay myself it’s all checked by HMRC, I’d contact them for advice, you might not get any fines because it’s so early in the process. They can be helpful.

@FAQs should I contact hmrc or companies house? I’m sure I clicked sole trader when setting the account up online so not sure how I have set up a ltd company

Did you apply on Companies House?

@Chasingsquirrels

Did you apply on Companies House?

@Chasingsquirrels no I applied through tide (online bank)

You should be able to see on your tide account. Have a look, sort that out. And then contact companies House. If you do a google search in your name + companies house any directorships should be listed. Although it's easy to set up a company/director there are still certain hoops to jump through and you would have noticed what you were doing, it's not just tick a box - or at least if you did mistakenly tick the limited company in the bank account they should have asked for proof from companies house.

I'd not heard of Tide and have just had a quick look.
The application page seems pretty clear that you already need a Limited company to apply as such, and going through the Company process you have to put in the company details to proceed.
Going through the self employed process is equally straight forward and had no mention of company details.
This seems bizarre.

Regardless, getting rid of a company that has never traded is very easy. Google "Companies House strike off a company".

@Forestdweller11

You should be able to see on your tide account. Have a look, sort that out. And then contact companies House. If you do a google search in your name + companies house any directorships should be listed. Although it's easy to set up a company/director there are still certain hoops to jump through and you would have noticed what you were doing, it's not just tick a box - or at least if you did mistakenly tick the limited company in the bank account they should have asked for proof from companies house.

@Forestdweller11 The tide accounts hasn’t been opened still awaiting approval. When I Google it comes up with the company listed. I think I ticked the wrong box ltd instead of sole trader but I wasn’t asked for any proof. I received a code from tide which I thought was to activate the account but now I think it was to confirm the company

In order to set up a Ltd company, you would apply through companies house, you would then be sent a registration number. If you google companies house you can search for individuals and Ltd companies on the website. You can’t just become a registered company unless you authorise an agent and also pay the fee.

Don't Tide have a service where they set up the Ltd company for you?

Wow, banks should not be facilitating setting up limited companies for this very reason! Do not use the ltd company bank account under any circumstances. If you can prove that the account has never been used you might just be able to close the ltd company without submitting dormant accounts, confirmation statement in a years time. You need to contact Companies House and go from there.

@mynameiscalypso

Don't Tide have a service where they set up the Ltd company for you?

Ah yes! www.tide.co/company-registration/

As above, striking off an unused dormant company is very easy.

Hey did you rectify this? As I've made the same mistake