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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have a Limited Company which was set up over 15 years ago,

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I have a Limited Company which was set up over 15 years ago, there is a small amount of trading from property management whereby I manage a few properties but no profit generated. I submit accounts annually via an accountant.
I now want to set up a new business with my domestic partner and work together. This would be a totally different type of business (selling products online) and am not sure if I am able to also run this new business under the Limited Company, the same bank account and set it up as a T/A business and make my partner a Director; or set up a separate Partnership business account?
Is it possible to run two different businesses under the Ltd Co? If so, I would look to make my partner a Director so we are equals and think about changing the Ltd Co name to a more generic name as an umbrella to the 2 different businesses.
Please advise.
Submitted: 12 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 12 months ago.
Thank you for your question.. To be honest, you would be better off running this business independent as you are dealing with separate activities and types of business all together.There is no real benefit to be gained operating under one heading.You could set up separate companies under common ownership and run as a group of companies.. an expensive route in administative costs etc.My advice to you is to keep it simple and separate. If the business develops after initial start-up period, consider forming a new company..cost of company formation is not that high. I hope this is helpful and answers your question.If you have any other questions ,please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 12 months ago.

Thank you for your answer.

I am concerned about setting up another Ltd Co as that would mean twice as much in annual accountancy fees etc, especially when the property management side of things will never grow as that is something I am only doing for a small group of properties.

My understanding is that I cannot shut down the existing Ltd Co unless it is dissolved and by dissolving it will have a negative impact on me personally, is this correct? Otherwise I would have to keep it going and even if I cease trading, I would have to produce annual dormant accounts, is this correct?

Is it possible to set up the property management side of things under a different formation, eg Partnership and then change the Ltd Co to the new business or is that too complex as it would involve changing the Co name and Bank account? This would possibly reduce the admin costs for the future.

If setting up another Ltd Co is the best way forward from your advice then I will pursue that route, however I thought I would investigate all options first.

I have an accountant, however I do not feel I can trust his advice as he has been very forgetful over the last couple of years and as a result of him forgetting to file returns on time etc, I have had fines to pay so I am looking to change to another accountant.

Thank you.

Expert:  taxadvisor.uk replied 12 months ago.

Thank you for reply.


[question]

I am concerned about setting up another Ltd Co as that would mean twice as much in annual accountancy fees etc, especially when the property management side of things will never grow as that is something I am only doing for a small group of properties.


[answer]
I suggested to keep it simple.. you don't have to form another LTD company from day one.. run it as a partnership/sole trader set up and only consider forming a LTD company once it is viable. At that point transfer the business into a LTD company

 

[question]

My understanding is that I cannot shut down the existing Ltd Co unless it is dissolved and by dissolving it will have a negative impact on me personally, is this correct? Otherwise I would have to keep it going and even if I cease trading, I would have to produce annual dormant accounts, is this correct?

Is it possible to set up the property management side of things under a different formation, eg Partnership and then change the Ltd Co to the new business or is that too complex as it would involve changing the Co name and Bank account? This would possibly reduce the admin costs for the future.


[answer]
Leave property management set as a LTD company. If there is no activity, then consider making the company dormant rather than close/disolve it

If setting up another Ltd Co is the best way forward from your advice then I will pursue that route, however I thought I would investigate all options first.

[answer]

Run your new business as a sole trader/ in partnership and only consider LTD company route once it is established.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 12 months ago.

So if I set up a new partnership with my partner for the new business and I am still a Director of the Ltd co, do I need to register with HMRC as self employed?

I have some further questions but am happy to raise as a new question for you so you can be reimbursed for your time. Please let me know if you are happy to continue this on a new question.

Expert:  taxadvisor.uk replied 12 months ago.
Thank you for your reply

Please raise a new question for further question. If you wish me to answer them then please request that in the body of your question.

I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4791
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  taxadvisor.uk replied 12 months ago.
I thank you for accepting my answer.

Best wishes.

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