Forming a limited company

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13 years 1 month ago #18133 by moggy
I have an appointment with what I hope will be our new accountant next week, but would like to be a bit better prepared before then.
I have reserved the company name, but really have not got a clue what happens after that.

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13 years 1 month ago #269205 by reggit
Replied by reggit on topic Forming a limited company
You set up the company (costs about $150), register it with the companies office, and then your accountant does much of the rest [;)].

It means one tax return for your company, and one for each of you individually (assuming you are a team of two)

You have to have shareholder meetings that are recorded (two of you over a glass of wine [}:)]), and put in an annual return once a year.

If you run vehicles under the company, you have to pay fringe benefit tax (unless you don't use the vehicle at all for personal use) or can get the accountant to do it as a 'shareholder contribution adjustment'. As I said, the accountant is key from this point onwards.

My understanding is that a company structure does not protect you any more from any liabilities personally if you are close to the action, as you would be as a manager/director/shareholder.

Have fun! [;)]

Take a break...while I take care of your home, your block, your pets, your stock! [;)] PM me...

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13 years 1 month ago #269206 by Jack
Replied by Jack on topic Forming a limited company
Gidday

Our Accountant did the lot for us. No worries.

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13 years 1 month ago #269210 by Ronney
Replied by Ronney on topic Forming a limited company

moggy;249137 wrote:
I have reserved the company name, but really have not got a clue what happens after that.


I did once but have forgotten. When Kevin went into business on his own account we looked at, and discussed with our accountants, the whys and wherefores of becoming a limited company. The idea was flagged because it was going to be an expensive excercise with little benefit to us given that we were effectively a one-man-band. We opted for Partnership which has worked very well for us for the last 8 years. Now that you've made me think about it, most of the people we deal with are not limited companys - just the big players such as Truck Stops, Goughs, TWL, Lamberts.

Let the accountant put it in front of you then go away and think about whether it is going to work for you.

Cheers,
Ronnie

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13 years 1 month ago #269220 by moggy
Replied by moggy on topic Forming a limited company
Ffrom the setting up business course that I did, it definitely seems the right option. We have already been trading as a partnership and submitting returns, however we currently pay cash, and don't employ staff, so not really necessary at the moment to be a limited company.
The reason for going for a limited company now is that there is soon be a large investment in a campsite, with obviously the risk of public liability (yes there is insurance for that). We wish to guarentee that our property would not be at risk should something go pear shaped, so the campsite grounds will be leased to the company with limited liability (as long as we do not trade recklessly). It is also envisioned that staff will need to be employed at some point as well (though not at kick off). In particular we would like to separate the liability of the company for fire risk from our own personal risk. (high fire risk area surrounded by DOC land, we know how to be careful, our visitors may not). So from what I have read so far a limited company suits the business model.

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13 years 1 month ago #269221 by moggy
Replied by moggy on topic Forming a limited company

tigger;249140 wrote: You set up the company (costs about $150), register it with the companies office, and then your accountant does much of the rest [;)].

daft question, how to you convert a reservation into a registration?

My understanding is that a company structure does not protect you any more from any liabilities personally if you are close to the action, as you would be as a manager/director/shareholder.

Have fun! [;)]


thanks, I understand that it does protect you, the key is, you have not have got to not have been trading recklessly. So if you decided to gamble the money someone gave you to invest on a one legged horse in a race, no you would not be covered, of you had a spending spree on the company credit card when you already were thousands in debt that you knew you could not pay off, you could lose everything. But should an tsunami arrive and kill everyone camped on your campsite and your house at the same time, you are covered by your limited liability.
As far as I can tell, you keep records of absolutely everything to cover your back, so if necessary you can prove you were not trading recklessly.

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13 years 1 month ago #269226 by Toast
Replied by Toast on topic Forming a limited company
A friend registered her company on-line herself for $60 instead of the $400 fee the accountant was going to charge. Sounds like it might have gone to $150 by what Tigger has said.

I shall probably do same soon so will be interested to read replies.

[SIGPIC][/SIGPIC]Toast is the best food in the world
Whisky is the best drink in the world

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13 years 1 month ago #269240 by reggit
Replied by reggit on topic Forming a limited company
You may have already done this, but also invest in a good lawyer for advice at this stage [:I] in conjunction with the accountant.

The comment about Ltds not protecting your personal assets as they used to comes from our own lawyer and accountant over the last few years.

Another option to consider is family trusts to hold your personal assets in case anything goes pear-shaped, esp as you say when there is the possibility of a camper doing silly things that could then end up with fingers being pointed at you, rightly or wrongly...

Take a break...while I take care of your home, your block, your pets, your stock! [;)] PM me...

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