Limited Company

[benlewis13]

Well, i just registered my company as a limited company. What do you fell the benefits to you of this are?

[Corabar Entertainment]

So are you "Entertainment Unlimited Limited" now then?

[Solitaire Events Ltd]

Well, i just registered my company as a limited company. What do you fell the benefits to you of this are?

Should you not have looked into this before doing it?

Seems a bit strange, I have to say.

[Solitaire Events Ltd]

So are you "Entertainment Unlimited Limited" now then?

Sorry, but LMAO!:D :D :D

[wensleydale]

Well, i just registered my company as a limited company. What do you fell the benefits to you of this are?

I can say with some certainty, that there are no benefits to me whatosever in you becoming a limited company.

Rich

[DMX Will]

I can say with some certainty, that there are no benefits to me whatosever in you becoming a limited company.

Rich

LMAO. I know nout about this, but surely you should have registered with reasons, or was it to have a more professional name? :confused: :confused:

[benlewis13]

no, we did register for reasons, i just wanted to find out what your reasons might have been if you did it. Btw its CPS Events LTD.

[DMX Will]

no, we did register for reasons, i just wanted to find out what your reasons might have been if you did it. Btw its CPS Events LTD.

What were your reasons?

[benlewis13]

primarily to raise capital, create a professional image, make it easier to get loans and make customers feel protected.

[Thames Valley Discos]

why on earth would being ltd make your customers feel protected?

[DMX Will]

and against what?!

I suppose you won't find many cowboy DJs with a legit LTD mark next to their name. However I'm sure they are out there. That of course would only apply if the client was aware of the difference between a professional DJ and a cowboy!

[benlewis13]

More in the fact that, well remember APLUS ENERTAINMENT, they were nota registered company, what happens if something goes wrong, they can just run away from the problem. As a registered company you cannot do that, that in turn would reduce the price of your shares, raising less capital. Also the name LTD would make me feel more protected in legal terms.

[soundtracker]

why on earth would being ltd make your customers feel protected?

Because it creates the "ILLUSION" of being bona-fide - not saying that this is the case for all Ltd companies, but it is often used as a cloak of deception to give credence to the unscrupulous.

[colinm345]

Lol Im sure in this case it does not apply
but dosent this mean more paperwork and having to submit information on a regular basis to companies house?

[benlewis13]

Fortunatly not, there is some, however not nearly the same amount as a PLC.

[Thames Valley Discos]

so will we see you on the FTSE or AIM market? cant see the idea behind your thinking

[benlewis13]

Of course we wont be on the stock market. That is for PLCs only. We are a LTD company. We can sell shares to anyone but cannot list ourselves on the stock market. I have studied this in depth and I know my reasons for doing this. I was simply asking if anyone else had done it, and what their reasons were for doing it.

[Corabar Entertainment]

Ben - Paul (TVD) was joking!

There are a few of us on here that are Ltd (including us)

[benlewis13]

ok lol, guess i didnt pick that up.

[A1DL]

primarily to raise capital, create a professional image, make it easier to get loans and make customers feel protected.

a couple of points, Ben:

From my understanding, and experience 8 years ago, until a Ltd. Co. has filed the first set of accounts, it will be virtually impossible for the Co. to raise capital and get loans under its own steam, without a personal guarantee from a Director or Secretary.
the first thing a prospective lender will carry out is a company search, either at Companies House or using a Credit Reference Agency like Equifax, D&B, etc. Assuming the first year end is the anniversary of the month of incorporation, depending on how slowly or quickly your accountant works, accounts will typically be filed between 14 and 20 months after incorporation, longer if an extension is applied during the first year to achieve a desired year end month.

[colinm345]

I think that is correct:)

[benlewis13]

It is correct. However we do not just plan shot term, that would not make a successfull business.

[A1DL]

It is correct. However we do not just plan shot term, that would not make a successfull business.

Being able to spell "Successful Business" may help to make one, Ben :)

Too many smelling pistakes on here :eek:

[NeilP]

Having traded at different times as a Sole Trader, Partnership and Limited Company i can see pro's and con's to all of them. There is also a 'LLC' which is apparantly half way between a Sole Trader/Partnership style agreement and a Ltd agreement.

I agree that it may 'look' more professional, but unless you are a large Company with many DJ's and Rigs under your belt, it won't pay you any dividends to be Ltd as when you talk to the prospective client they will soon realise quite how big or small you are Having said that it won't financially do you any harm either as you can draw less money as 'wages' (which you pay NI and PAYE on) and more as 'Dividends' (which you only pay PAYE on).

With regards protecting the customer, being a Ltd company offers the customer less protection than that of a sole trader, as being a limited company is just that, unless the Directors of the company are found to have traded illegally, then the liability of the company is, well, limited - i think to the total value of the shares (quite often set up as £100 = 100 shares). It does however, offer more protection to the Directors of the company, as with a Ltd company, it is the company that will be sued for breach of contract etc etc not the director themselves.

To answer the original question though, i have done it, but not for this industry, and i cannot see any reason why it would do you any harm. In the longterm, if your aim is too build a larger business with multiple rigs and DJ's, Entertainers, Equipment Hire etc etc, then it would pay to do it - and become VAT regsitered as well (and all the paperwork that comes with that!!)

Good Luck!

[A1DL]

Ben

Out of curiosity, what was the incorporation date of CPS Events Limited, and what is the Limited Company Registration number (it will be a 7-digit number starting with a "6")

The only reason I ask is that there is no record of such a Company on the Companies House database, in either Current or Proposed name submissions.

And this database is updated daily and reporting companies that were incorporated yesterday.

Please explain.

[theoloyla]

Unless you feel at risk of going bust and being made bankrupt there is no advantage to a trader becoming a limited company in my view.

[benlewis13]

No, we just incorporated yesterday. The companies house has received our details today, so should be done by tomorrow.

[Thames Valley Discos]

There are advantages, but if you intend running one disco then i cant see any. If you intend expanding then yes there are. But 17 years old seems a little young to be considering going LTD in my opinion.

[A1DL]

No, we just incorporated yesterday. The companies house has received our details today, so should be done by tomorrow.

Ben

I don't want to appear pedantic, but that your last post makes no sense whatsoever.

1. How did you incorporate yesterday, if CH only received your details today?

2. How do you know CH received your details today?

3. What exactly "should be done" by tomorrow? (i.e. what is left to be done if the company was incorporated yesterday?)

4. To the best of my knowledge CH do not work Sat & Sun.

5. If your application had been received it would be loaded as a Proposed Name prior to acceptance. The Company name you have quoted hasn't been loaded.

I would suggest you remove the company name from your website as the facts are it does not yet exist.

Always resort to the facts.....

[colinm345]

Being able to spell "Successful Business" may help to make one, Ben :)

Too many smelling pistakes on here :eek:

Spott onn:)

[Corabar Entertainment]

Spott onn:):lol:

[Dragonfly]

yoo hav miy complet agreament two.

[benlewis13]

OK, we received an email stating that are details had been sent to them today, and that the company will be registered by Monday morning. Ok so we are nearly incorporated, i meant that i had sent the details off.

[A1DL]

OK, we received an email stating that are details had been sent to them today, and that the company will be registered by Monday morning. Ok so we are nearly incorporated, i meant that i had sent the details off.

So the story changes yet again... Ben, it won't be incorporated on Monday morning because CH don't work on New Year's Day.

I'm not having a go at you, but please for your own sake, remove the name of your "non existant company" from your website, as you are misrepresenting yourself.

Ask for advice on here, there's plenty of guys & gals on the forum that have been in business a long time, but avoid the bull**** as most can see through it and it won't help you in the long run.

[benlewis13]

sorry, that is not entirely my fault, they said next working day, i just forgot new years day was monday.

[theoloyla]

There are advantages, but if you intend running one disco then i cant see any. If you intend expanding then yes there are. But 17 years old seems a little young to be considering going LTD in my opinion.

I may be wrong, of course, but as I recall from my accountancy and business studies training I thought it was not permissable for a minor (someone under the legal age of accountability i.e. 18) to be a director of a Limited Company.

[A1DL]

I may be wrong, of course, but as I recall from my accountancy and business studies training I thought it was not permissable for a minor (someone under the legal age of accountability i.e. 18) to be a director of a Limited Company.

There is no minimum age limit in the Companies Act for a director to be appointed in England and Wales. However, he or she must be able to consent to their own appointment. You should seek legal advice if you intend to have a very young person as a director of your company.

In Scotland the Registrar will not register for any company the appointment of a director under the age of 16 years old. A child below that age does not have the legal capacity to accept a directorship - Age of Legal Capacity (Scotland) Act 1991. If you need more information, contact Companies House, Edinburgh.


source:wikipedia

[Steve 'B']

Well I have to say A1DL you are not giving the guy a chance. I know what he is saying sounds a little up and down but the fact is, you can see he wants to be up the top with the best and there is no harm done in asking silly questions. I wish at 17 I was asking for advice on how to become Ltd and its advantages. I am sure on some site out there we will find a list of pro's and cons to being Ltd. That’s all we need. Don’t worry about when and how fast you did things.

All I am trying to say is.....GIVE THE GUY A BREAK!!
His just trying.

Anyway, Happy New Year to all of you and may business continue on its up hill march for all of us.

[DK Karaoke]

Well I have to say A1DL you are not giving the guy a chance. I know what he is saying sounds a little up and down but the fact is, you can see he wants to be up the top with the best and there is no harm done in asking silly questions. I wish at 17 I was asking for advice on how to become Ltd and its advantages. I am sure on some site out there we will find a list of pro's and cons to being Ltd. That’s all we need. Don’t worry about when and how fast you did things.

All I am trying to say is.....GIVE THE GUY A BREAK!!
His just trying.

Anyway, Happy New Year to all of you and may business continue on its up hill march for all of us.


Agree with this one, give the guy a break, we all start somewhere and try to do the best to be the best.;)


Ben

Out of curiosity, what was the incorporation date of CPS Events Limited, and what is the Limited Company Registration number (it will be a 7-digit number starting with a "6")

The only reason I ask is that there is no record of such a Company on the Companies House database, in either Current or Proposed name submissions.

And this database is updated daily and reporting companies that were incorporated yesterday.

Please explain.

On this one, am not sure about the company numbers all starting with 6. My company number starts with a 4!!!!!!!!!!!! and I have been going for 3 years as Ltd.


Having traded at different times as a Sole Trader, Partnership and Limited Company i can see pro's and con's to all of them. There is also a 'LLC' which is apparantly half way between a Sole Trader/Partnership style agreement and a Ltd agreement.

I agree that it may 'look' more professional, but unless you are a large Company with many DJ's and Rigs under your belt, it won't pay you any dividends to be Ltd as when you talk to the prospective client they will soon realise quite how big or small you are Having said that it won't financially do you any harm either as you can draw less money as 'wages' (which you pay NI and PAYE on) and more as 'Dividends' (which you only pay PAYE on).

With regards protecting the customer, being a Ltd company offers the customer less protection than that of a sole trader, as being a limited company is just that, unless the Directors of the company are found to have traded illegally, then the liability of the company is, well, limited - i think to the total value of the shares (quite often set up as £100 = 100 shares). It does however, offer more protection to the Directors of the company, as with a Ltd company, it is the company that will be sued for breach of contract etc etc not the director themselves.

To answer the original question though, i have done it, but not for this industry, and i cannot see any reason why it would do you any harm. In the longterm, if your aim is too build a larger business with multiple rigs and DJ's, Entertainers, Equipment Hire etc etc, then it would pay to do it - and become VAT regsitered as well (and all the paperwork that comes with that!!)

Good Luck!

This is not correct!

You do not pay PAYE on dividends, you have a notional accounting entry of 10%, which is not the same as paying tax. You can take dividends plus salary up to your higher tax limit without paying any tax or NI on the total sum. You only pay PAYE and NI (Ee's and Er's) on your salary. Please do correct me anybody if you think I am wrong!!!!!

One other thing I forgot to mention.

The major benefit of being Ltd, apart from the 'limited liability' is the tax implications.

Under Self Employed you only benefit from the single persons allowance, say £5k per annum, plus your expenses, with everything above this taxed as income at 10% for everything up to £2,150, 22% on everything above this, and up to £33,300, with everything above this at 40%.

Under Ltd, you only pay 19% (corporation tax) on 'PROFIT' made after expenses and depreciation - running cost. That is assuming your profit does not go over £300,000.99p. Everything after this up to £1,500,000.99p is at marginal relief, with everything above £1,500,000.99p tax at 30%.

Therefore the benefits of being Ltd are clear to me.

[A1DL]

On this one, am not sure about the company numbers all starting with 6. My company number starts with a 4!!!!!!!!!!!! and I have been going for 3 years as Ltd.

I did not say "the company numbers all start with 6".

The OP stated his Company was brand new. All companies formed from mid Nov 2006 start with a "6"

Hope this clarifies


Well I have to say A1DL you are not giving the guy a chance. I know what he is saying sounds a little up and down but the fact is, you can see he wants to be up the top with the best and there is no harm done in asking silly questions. I wish at 17 I was asking for advice on how to become Ltd and its advantages. I am sure on some site out there we will find a list of pro's and cons to being Ltd. That’s all we need. Don’t worry about when and how fast you did things.

All I am trying to say is.....GIVE THE GUY A BREAK!!
His just trying.

Incorrect. Read my posts again.

I have simply asked a few direct questions when posts did not make sense.

As I also pointed out there are lots of experienced forum members, including myself, who are only too pleased to help and advise.

My most important piece of advice was for Ben to remove the name of a company that does not exist from his website, as such is unlawful and constitutes misrepresentation.

Hope this clarifies.

[benlewis13]

To make a1dl happy, the company was registered today.

Dear BEN LEWIS,



The status of the order for a company (CPS EVENTS LTD) that you placed with Coddan CPM, has recently changed.

The new status of your order is:

Company was registered

Additional information available:

Company was registered 02/01/2007. Documents will be sent to the client shortly

[A1DL]

To make a1dl happy, the company was registered today.

Dear BEN LEWIS,



The status of the order for a company (CPS EVENTS LTD) that you placed with Coddan CPM, has recently changed.

The new status of your order is:

Company was registered

Additional information available:

Company was registered 02/01/2007. Documents will be sent to the client shortly

Ben

Doesn't make me happy or unhappy, take the advice or leave it... when I was 17 I would be taking it, but you can't put an old head on young shoulders!

Good luck anyway matey

Tony :beer1:

[DMX Will]

Tony :beer1:

Good advice before, but now your trying to corrupt a innocent child!

But hey you can have a :beer1: with me ;)


:beer1: :beer1: :beer1:

[A1DL]

Good advice before, but now your trying to corrupt a innocent child!

But hey you can have a :beer1: with me ;)


:beer1: :beer1: :beer1:


It was Lemonade Will..... well shaken and in a beer glass :D

[DMX Will]

It was Lemonade Will..... well shaken and in a beer glass :D

I don't want to know why it's yellow! :D :D :D

[Danno13]

Proper lemonade is yellow...

[DMX Will]

Proper lemonade is yellow...

not that yellow! >>:beer1:

[Danno13]

Must be the glass then :D