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?\

Roughly what costs are involved, and what are the big pitfalls?

Thanks

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 .

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

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.

Thanks MrA, you're a star

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).

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.