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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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hi i am thinking of changing from being a sole trader to a

Resolved Question:

hi i am thinking of changing from being a sole trader to a limited company. do my previous sales i made as a sole trader which i had full liability on get transferred to limited liability also when i switch?

also if i was to decide to close down / no longer trade as a sole trader would i still be personally liable for previous sales even after closer or would this no longer be possible?

thank you in advance
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

Any sales you make WHEN you become Ltd Co will transfer.

Alex Watts :

Sales BEFORE do not transfer

Alex Watts :

So the liability remains with you.

Alex Watts :

If you no longer decide to trade, yes you remain personally liable and should take steps to keep insurance in place unless you have a sunset clause on your insurance policy

Alex Watts :

In short the Ltd Company is liable for the sales IT makes

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Hi Alex

Customer:

Thanks for your reply

Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.


 


Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/

Customer:

With the personal labially i have as a sole trader if i close or change to a limited how long after do i stop being personally liable?

Alex Watts :

3 years for personal injury / 6 years under contract

Alex Watts :

Does that help?

Customer:

what i sell is LED lighting with a 1 year warranty. how long for them please?

Alex Watts :

1 year generally, although in theory if someone was injured they have 3 years to bring a claim and 6 years in contract.

Alex Watts :

Which is why you need to check to see if your insurance has a sunset clause

Customer:

i dont know if you know about LED lighting but they have a really long lifespan which is meant to be around 10 years + but the warranty is only one year so it just one year i would be liable for?

Customer:

the reason i ask this is a client has had alot off me and thinks they are faulty but they did not listen and put the wrong power supply on so there was not enough wattage getting to the lights, but they are ringing round finding to other people have issues from my LED supplier in china also, but they put the wrong power supply on so regardless they cant do anything to me?

Customer:

also i do not have a shop it is just website and phone based sales my terms and conditions are on my website is that enough or would i have to provide them with a copy?

Alex Watts :

Well if they broke the lights or did not use them in accordance with how they were meant to be used, there is no claim

Alex Watts :

He can try but likely to fail.

Alex Watts :

But he should have used them correct.

Alex Watts :

Does that clarify?

Customer:

Thanks Alex and the last question my terms and conditions are on the website is that enough or do i have to provide copies?

Alex Watts : No that is not enough, you need to have signed, unless you concluded the deal online then you are bound.
Alex Watts : Does that clarify?
Customer:

so the client has to sign my terms and conditions? if i provide copies with orders in future is that enough? thank you again

Alex Watts : Yes.
Alex Watts : Does that help?
Customer:

so as long as i put a copy in with the order of the terms and conditions its enough? last question i promise :)

Alex Watts : Yes. But of course it doesn't stop anyone trying to bring a claim.
Alex Watts : Does that claiify?
Alex Watts : clarify?
Customer:

thank you

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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