Second Ltd Co.

[Gaz_M]

I have now decided the best route for my Plan B is to open a second limited company.

Does anybody on here have a second co & if so, how do you arrange the accounts? I.e. I use a very well known accountancy firm for my IT consultancy but I don't really want to pay the same amount again for my Plan B accounts which could turn over just £100's in the first couple of years. However, I obviously have to keep things in order so is there another way of doing this without forking out a small fortune in comparison to what I earn?

[Kenny@MyAccountantFriend]

Try speaking to your current accountants to see if they can arrange a deal for you as the new company may not require payroll, vat etc so could be a lot simpler that the contracting company.

If they can't try looking around as I am sure a company would be able to complete only year end accounts for a reasonable fee.

[eek]

If the accounts are really simple just get one of the spreadsheet accounting packages like DIY accounting.

It will generate the balance sheet and other stuff that you need..

[BolshieBastard]

I have now decided the best route for my Plan B is to open a second limited company.

Does anybody on here have a second co & if so, how do you arrange the accounts? I.e. I use a very well known accountancy firm for my IT consultancy but I don't really want to pay the same amount again for my Plan B accounts which could turn over just £100's in the first couple of years. However, I obviously have to keep things in order so is there another way of doing this without forking out a small fortune in comparison to what I earn?

Ah well you see, if you'd done some research and not plumped for one of these internet IT accountants, you wouldnt have the concerns.

I've used my local IT Contractor savvy accountant for 17 years so had no qualms about using them when I opened a second income stream through the same limited.

Your best bet imho, is to research your local accountants and find one who is IT Contractor savvy (they do exist despite what people tell you) and discuss your needs. Then. migrate your company to them and open the second income stream.

Running 2 separate ltd's is possible but its obviously more costly. You'd also be using two different accountants which isnt insummountable.

[VectraMan]

I obviously have to keep things in order so is there another way of doing this without forking out a small fortune in comparison to what I earn?

Yes. If you can't handle doing it yourself, then you probably shouldn't be going into business.

[Gaz_M]

Yes. If you can't handle doing it yourself, then you probably shouldn't be going into business.

Neither helpful nor funny.

Not really worth you bothering.

[ASB]

Why have you decided a second company is best rather than just expanding your current operations ?

Neither is "right" or "wrong", a second company would avoid exposing any existing assets to any risk from potential creditors. But there is expensive (in comparison to turnover etc) accountancy.

Did you consider initial implementation through your co, then hive it off if it takes off ?

[Maslins]

Why have you decided a second company is best rather than just expanding your current operations ?

Neither is "right" or "wrong", a second company would avoid exposing any existing assets to any risk from potential creditors. But there is expensive (in comparison to turnover etc) accountancy.

Did you consider initial implementation through your co, then hive it off if it takes off ?

This would be my thoughts, though your OP suggests you're happy you've considered pros/cons and decided separate Ltd Co's best.

I wrote a blog about pros and cons here which might be of interest...but my general view is keep it under the same company unless there's a good reason not to.

[Gaz_M]

Why have you decided a second company is best rather than just expanding your current operations ?

Neither is "right" or "wrong", a second company would avoid exposing any existing assets to any risk from potential creditors. But there is expensive (in comparison to turnover etc) accountancy.

Did you consider initial implementation through your co, then hive it off if it takes off ?

It's because I won't be registering my second co for VAT. My consultancy Ltd is also working on flat rate VAT & I wouldn't want to change that. Finally, my accountant has also told me that their bookeeping software cannot cope with the volume of transactions that I potentially could put through my 2nd Co.

All in all it seems better to keep the two as seperate entities.

[ASB]

It's because I won't be registering my second co for VAT. My consultancy Ltd is also working on flat rate VAT & I wouldn't want to change that. Finally, my accountant has also told me that their bookeeping software cannot cope with the volume of transactions that I potentially could put through my 2nd Co.

All in all it seems better to keep the two as seperate entities.

They all seem reasonable reasons.

There is the theoretical risk of HMRC considering them associated for VAT purposes - though your description of Plan B likely turnover would suggest it is considerably different and this shouldn't be an issue.