Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company or work as a sole trader. My concerns are when they ask for the financial part of £8000 for the first lorry and I have to show the availability of the money, either in cash or credit card, I can use my personal bank account or If I have an LTD will have to show money in the business account?
Hope someone can help me! Thanks
Hope someone can help me! Thanks
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Have a letter saying as a director you can make sufficient funds available to the company. Beware if its a joint personal account your mrs will have to do oath in front of a solicitor to confirm her wish (as we did). Remember too, you can't change entity on o licence ie go ltd later with same licence
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
You can, but nothing can change apart from sticking *LTD* on the end, I've done it in the past, but you need to trawl through the regulations like a forensic lawyer to find the *clause *...... I'd be a little less entrepreneurial at the moment and wait awhile until everything is back to normal (ish)..... IMORicMatter wrote: ↑Tue Apr 25, 2023 2:42 pm Have a letter saying as a director you can make sufficient funds available to the company. Beware if its a joint personal account your mrs will have to do oath in front of a solicitor to confirm her wish (as we did). Remember too, you can't change entity on o licence ie go ltd later with same licence
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
-
- Posts: 13
- Joined: Wed Apr 19, 2023 10:37 am
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
if it did go tits up and you were owing money,the can take you to court and the ltd status removed and go after your assetsIaformon wrote: ↑Tue Apr 25, 2023 2:43 pm Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
are you sure about this?thrmeden01 wrote: ↑Tue Apr 25, 2023 2:43 pmif it did go tits up and you were owing money,the can take you to court and the ltd status removed and go after your assetsIaformon wrote: ↑Tue Apr 25, 2023 2:43 pm Personally if I was doing it I would go Ltd all the way, not to prove funds etc but mainly due to the liability risks if the business goes tits up and the fact that you can sell an Ltd business but not a business in your own name.
Remember an Ltd business is it's own legal entity.
Any of your own personal money put into the business should be in the form of a directors loan, that way when you take it out in the future you will not be taxed on it as income from the business etc. Also you can apply a good interest rate to the business loan which is way higher than you will get from a savings bank account.
If the company did go bust you would of course lose the loan as you would just be another creditor to the business even as a director.
The limited stands for limited liability, as long as you haven't given any personal guarantors for business things you should be fine.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Thanks everyone for the answer! Me and my Mrs don't have a joint account is all on my name but If I start as an LTD and put my personal money in money to prove I have the £8000 which they ask for the licence application will they be considered as income in the company and get taxed? This is what I understood from the first answer..what If I just show them my personal account? Where all money are and credit cards..I won't be able to apply as ltd I believe.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Not being funny but £8k. should be the minimum available all the time unless you got about £25 _£30k available don't bother you need running money before if your lucky you get paid most companies pay week 1 work in week 7
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Send the money from your personal bank account to the business back account as DIRECTOR LOAN. Leave them there for 28 days, then apply for O-licence.
Anyway, you'll have to forget these 8K. You can't touch them, only on emergencies, but you'll have to make sure that the average over every 3 months is above 8K.
Take in mind the costs to operate for at least 2-3 months. Fuel, maintenance, wages, transport manager, yard fees, tacho downloader, tacho analysis subscription etc. Don't rely on these 8K.
Anyway, you'll have to forget these 8K. You can't touch them, only on emergencies, but you'll have to make sure that the average over every 3 months is above 8K.
Take in mind the costs to operate for at least 2-3 months. Fuel, maintenance, wages, transport manager, yard fees, tacho downloader, tacho analysis subscription etc. Don't rely on these 8K.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
- Attachments
-
- Image.jpg (123.47 KiB) Viewed 330 times
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Another mention. Do not put anything at the reference when you make the transfer. Leave it blank.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
You will need at least double that you may not get paid for 45/60 or even 90 days so if 8 k is all you have don’t bother it’s not enough sorry
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
8K supposed to sit in a bank all the time. That is not money for diesel or pay to the driver. They can check it any time if you have that amount. If you do not, they can suspended your O license.
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
never start a haulage business with credit you are instantly in debtmarKnight wrote: ↑Tue Apr 25, 2023 2:47 pmyou can use a credit card to show financial standing
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
it’s only to show financial standing lol never use the credit card but just means you always have the funds “available”
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
LTD + Business account is a must
Re: Hello everyone! I am looking to get my operator licence and was wondering if it is better to open a limited company
Hi if you need a competitive finance quote on your initial trucks and trailers please get in touch.
Who is online
Users browsing this forum: No registered users and 2 guests