Business Startup

[Aaron]

Hi, Just about to start up a business and wondering if anyone has gone through the process and can let me know if it's best to be a sole trader or a limited company if you're in an IVA. I'm not planning on taking any income from the business for the first year or so as I am also a full time employee for another company...I was thinking a sole trader to begin with as it looks like you can be both employed and self-employed - just wondered if there were any implications on the IVA?

Thank you.

[kezza]

Hi

Being a sole trader you will not be able to take on any debt for the business as it is all tied, whereas being ltd you can keep things seperate

[Aaron]

Thanks Kezza, I don't plan to take any credit whatsoever! Very minimal start up costs. I think what i'm really asking is if I am self-employed by being a sole trader I don't have to take income from the company do I?

[kezza]

Very wise! So long as your income from your employment still supports your IVA there should not be a problem.

Good luck in all you do

[Aaron]

Thanks, yep, no plan on leaving my full time job.

[MelanieGiles]

Hi Aaron

I would suggest that you set up as a sole-trader for the first year and just see how things go. If the business becomes successful, then it will probably be sensible to incorporate, at a later stage. Don't forget to keep detailed accounting records, register with HM Revenue & Customs, and ensure that your IP has copies of your trading accounts at the end of each year.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk