Just thought I'd post a little thread on this topic - maybe we can debate/discuss the different options, just to stimulat conversation a little bit. In my line of work, and on the other forums I've posted on, I commonly see the above questions. My answer, often, is that there are three ways:
1) Yourself. The first way to set up a limited company is to do it yourself, directly with Companies House. This is often the cheapest way, but also the most effort on your part - however WebFiling has helped this.
2) Your accountant/lawyer. This is often the easiest way - they'll usually do most of the work for you, if not all of it. However, it is also the most expensive way to go about company registration - they'll charge you for your time.
3) Through a Formations Agent. This is often seen as the middle ground between options 1 and 2. You are required to put in a bit of work - often an online application form. However, you also end up getting advice and help and most of the filing completed by the agent - who is experienced and cheaper than your accountant!
So, what're your company formation experiences? Which is your preferred method and why?
If you want to set up a simple company, then doing it yourself should present no problems. The only I can see with the Forms that need to be filed, is the section on the Form IN01 which deals with the rights attaching to shares. If you want to set up a more complex structure then you will need an accountant/solicitor/formation expert to do it for you. Thanks, Truemanbrown
All depends what you're products or services are. I know a few big site owners who operate as sole traders. You don't have to go the Limited Company route, a lot will depend on your circumstances and expected revenue, salary etc. Setting up a Ltd company these days is pretty painless, there are multitudes of formation agents that are pretty cheap, or do it yourself. Depends on your level of knowledge. I used a formation agent, was surprised how straightforward the process was. As TruemanBrown says though, if you have a complicated structure, maybe share allocations etc, then sit down with your accountant.
“As TruemanBrown says though, if you have a complicated structure, maybe share allocations etc, then sit down with your accountant.” Have to say I do agree with you with regards to this point also. Although a formation expert is, as you've said, pretty painless - for anything more complex than standard shares and articles, consulting an accountant may be the way to go 
Why not book yourself for a free 1h consultation that most accountants offer and pick their brains. If you do this to 2 or 3 and they offer you the same advice you at least know whether to be a Sole Trader or Ltd Company. As for setting up a Ltd Co. It depends on your confidence as to which way to go. If you hate form filling and for some reason don't like HMRC ( ) then best leave it to someone who can do it right the first time.
I agree that taking advantage of freebie consultations is a must! A lot of accountants, as you say, and formation agents (if you've made the LTD-decision) now offer free consultations to ask questions about anything and everything. It may even highlight areas you'd not even considered, yet may be a legal requirement (often we find being the case for systems such as PAYE).
If its only
“If its only
“Which kind of company you want to start? Is it a ecommerce company?” erm, he runs a company formation service 
"...but thanks for the input!"  |
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