Partnership to Limited

[Cejay]

Hi All


I am in need of a bit of advice.

I am in an informal Partnership with 3 other family members, we want to change to a Limited company but there appears to be conflicting information on this. We are VAT registered although we are below the required threshold.

Any advice on how we go about doing this will be gratefully received.

Thanks a lot

Caroline

[Ian J]

The legalities are fairly simple as you just form the company with your present partners as directors and shareholders, ask the Vat people to transfer the registration to the Limited company, open a bank account and away you go.

Of course that is only the simplified version and there are other things to consider that are individual to yourselves rather than generalisations including the transfer of any goodwill and assets to the Limited company and your own individual tax positions and you should seek advice from your accountant on that.

[Cejay]

Thank you for that info

We have only been trading since beginning of Feb. We are a training company and at moment our office is at home.

The partnership has only this month made a profit due to having to pay for professional membership and course literature, therefore the balance in the bank is not really an issue as we are using any money to get the business going.(we all work full time and are running the business in our days off and spare time at moment so we all pay tax PAYE) as no profit has been made by the busininess yet i believe that when we comlete our self assessments no tax will be due.

So what i am saying is. as no money sat in a business account and no real assetts to speak of do we still have to go down the route of goodwill etc. Can we just stop trading a parnership and start limited company using the accounts from the partnership. I know i have to advise VAT and any of our suppliers and customers.

We want to do it now as we have got a contract for trining in our grasp and so now seems the best time to change if we are going to do it..

Hope that all makes sense.

Caroline

[Ian J]

All you have to do is to cease trading as one entity and start as another - as long as you have a bank account.