| Responses | Date | Author |
Hi Deborah
That's really helpful, thanks. I'm also VAT registered, and my own decision to go for Sole Trader very much matches with the reasons you give below. On that basis, I'd prefer to stay as I am. Most of my work is also with private sector clients and also some not for profit clients, where as you say, sole trader is not a deciding factor - at least for now! Hope your business is going well in these challenging ecomic times!
Vaughan |
| 25/08/2010 | Vaughan |
Hi Donna
That's really helpful, thanks. I'm also VAT registered, and my own decision to go for Sole Trader very much matches with the reasons you give below. On that basis, I'd prefer to stay as I am. Most of my work is also with private sector clients and also some not for profit clients, where as you say, sole trader is not a deciding factor - at least for now! Hope your business is going well in these challenging ecomic times!
Vaughan |
| 25/08/2010 | Vaughan |
Hi Vaughan. I have been a Sole Trader for 10 years, and considered this very carfeully when I set up, and a couple of times since. First consideration was for reducing tax liabilities, second was for visibility/credibility. In the end I went with Sole Trader and registered for VAT for the credibility aspect, and have not regretted it.
The only resistance I have experienced is in Public Sector, who are not keen on Sole Traders, even if you can supply 10 years accounts! I was a partner in a Limited Co for a while, and found that we could only get to tender stage without 3 years trading accounts and, more importantly, experience in the public sector.
As the majority of my work is private sector/not for profits it is not an issue. If you intend to work in the Public Sector, I would go for Ltd status. Otherwise, it is a personal and/or tax liability decision.
Deborah Willis |
| 25/08/2010 | Previous |
Hi Donna
Thanks for that. Have you, or has anyone found Sole Trader to be a positive disadvantage with any specific client groups, e.g local authorities, Health sector? I've heard from one or two people (but maybe this is wrong) that some organisations will only deal with a limited company. I'd be interested to learn what other people's experience is on this specific issue. |
| 23/08/2010 | Vaughan |
Hi Vaughan,
When new businesses pitch for funds they are quite often asked at banking stages for their company registration number- which you only get when you are a limited company, also Incorporation certificates are sometimes requested if you are doing business overseas which can only be sought from a Limited Company.
Also companies are more likely to do business with you if they can see the company exists, with a limited company all details are held at Companies House which can be viewed by members of the public.
Ultimately whether you register as a limited company or exist only as a sole trader is up to you and I wish you every success in the future
Donna :) |
| 23/08/2010 | Previous |