Thinking of going Limited?

A. Some of the main things that you need to consider would be the following:

• You will need to close bank accounts relating to the sole trade/partnership and open a new account in the name of the new limited company.
• Update any standing orders/direct debits you have in place for the new bank account details
• You will need to register the new company for taxes, i.e. corporation tax, VAT, PAYE.
• Ensure that all business stationery is updated, in particular new company letterhead which will include new limited company name and the correct VAT number.
• Notify all suppliers of the change to a limited company and ensure that all purchase invoices are issued to the new limited company name.
• If you employ staff in your sole trade/partnership these staff will need to be transferred over to the limited company. You will need to ensure you issue each employee with a contract of employment under the new limited company, provide each employee with a P45 from the sole trade/partnership and register them with Revenue as employees under the new limited company

Date published 19 Sep 2018

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.