| DesignerHelp: Do You Need To Be A Registered Company? |
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Company assets are things that you buy, which are invoiced to your company and paid for by company cheque / account or credit card. It’s up to you as to what you create as company assets. A company car or van, the lease on any business premises, computer system and office furniture are often purchased through the company.
Be aware that if you have business problems and have to close or liquidate or go into receivership, you will lose any / all business assets.
To buy or set up a limited company contact: www.companieshouse.gov.uk
To trade as a Sole Trader, you must register your details with Revenue and Customs within 3 months of starting to trade. Contact: www.hmrc.org.uk
2) As a sole trader, there is no protection of your personal assets. What are personal assets, become parts of your business, no protection for your house, car, telephone, games consol etc or other proud possessions?
It used to be that many decided to trade as a Sole Trader because the amount of paperwork / administration required was minimal but now all company types require a similar amount of accounts and other paperwork which is a legal required.
3) To trade as a Partnership: Like Sole Traders, business partners are also responsible for all the debts incurred by the business. This does not only apply to debts incurred by that partner but any partner.
Take care because creditors will take your personal assets to pay off debts incurred by other partners.
Business Partnerships are a bit like marriages, very unpleasant when they go wrong. Help protect yourself in the first instant by having a specific partnership agreement drawn up (through a Solicitor) between yourself and your partners.
For more help contact:
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