Role of Accountant in opening a company

[SueEllen]

But this structure can be changed quite easily, no ?
It is easy and more cost effective to set up the company oneself without the need of an accountant, who when I was shopping around when I was setting up, were charging a substantial overhead to set the co up.

Accountant I use set my company up free.

Only a few years later did they stipulate that you had to stay with them for a year if they did this for you, probably due to people taking the p*ss.

Also I do know someone who set up their company and when they spoke to someone whose prior job was setting up companies they had to dissolve the company, and start again due to it having the wrong structure. So it's worth getting someone else who does it regularly to do it for you as it saves you money and hassle in the long run.

[SallyPlanIT]

[QUOTE=kaiser78;1175417]

That's a very good point. I get quite a number of new clients that have already formed their limited company and we subsequently find out that they would have been better suited to a different trading structure.[/QUOTE]

But this structure can be changed quite easily, no ?
It is easy and more cost effective to set up the company oneself without the need of an accountant, who when I was shopping around when I was setting up, were charging a substantial overhead to set the co up.

As Clare has said, it could be costly mistakes. There are many accountants who will not charge for incorporations and registrations if you are using their accountancy services.

[Clare@InTouch]

[QUOTE=kaiser78;1175417]

That's a very good point. I get quite a number of new clients that have already formed their limited company and we subsequently find out that they would have been better suited to a different trading structure.[/QUOTE]

But this structure can be changed quite easily, no ?
It is easy and more cost effective to set up the company oneself without the need of an accountant, who when I was shopping around when I was setting up, were charging a substantial overhead to set the co up.

Potentially, but it may be a costly mistake. For example I've known people who've set up their own company with 10,000 shares, not realising that they have to pay for those shares. There's also the option of service addresses now - set up the company via an accountant and you may be able to use their address as your registered and service address from the start, meaning your personal address will never be freely available to the general public. Set it up yourself and your home address will always be available to anyone who wants to buy a copy of the incorporation documents.

A company will cost around £40 to set up yourself, or in the region of £100 through an accountant - who will then also help with VAT, PAYE and a bank account. That's not a huge amount extra.

[kaiser78]

[QUOTE=SallyPlanIT;1175194]That's a very good point. I get quite a number of new clients that have already formed their limited company and we subsequently find out that they would have been better suited to a different trading structure.[/QUOTE]

But this structure can be changed quite easily, no ?
It is easy and more cost effective to set up the company oneself without the need of an accountant, who when I was shopping around when I was setting up, were charging a substantial overhead to set the co up.

[SallyPlanIT]

Depends what your expectations and requirements are and what they are offering I'd have thought. I guess anything from just setting up your limited company to VAT, bank, PAYE, share structure advice, offer of registered office address and advice on whether you're actually suited for a company.

That's a very good point. I get quite a number of new clients that have already formed their limited company and we subsequently find out that they would have been better suited to a different trading structure.

[Stag Cozier]

I am new to contracting but it is clear to me that I do not want to continue with umbrella companies for a long time and want to start my own limited company. But I have one question:

What is the role of an Accountant in company setup?

Depends what your expectations and requirements are and what they are offering I'd have thought. I guess anything from just setting up your limited company to VAT, bank, PAYE, share structure advice, offer of registered office address and advice on whether you're actually suited for a company.

[SallyPlanIT]

I think it is worthwhile getting your accountant involved so that you can get advice on how to optimise the shareholding structure etc from a tax perspective.

Puma

Here here.
The share structure is important to get right as it could make the difference from paying tax at the lower rate if you have income above the higher rate threshold.

It is also advisable to take advice on your IR35 status.
There's a myriad of legislation within the contracting industry. A good accountant should be able to give you all this advice included within their fee structure.

Good luck with your business

[Steven@Parasol]

I am new to contracting but it is clear to me that I do not want to continue with umbrella companies for a long time and want to start my own limited company. But I have one question:

What is the role of an Accountant in company setup?

You don't necessarily need an accountant to set up a limited company but it is advisable to have one to manage your accounts.

Its best to seek out a specialist contractor accountant, or a high street accountant that has experience working with contractors and as others have said, there are lots of stickies and online guides around to help you do that. These will help make sure you are comparing like for like and identify any hidden charges etc such as exit fees.

Most of the specialist contractor accountants will help you set up your limited company as part of their monthly fee.

[THEPUMA]

I think it is worthwhile getting your accountant involved so that you can get advice on how to optimise the shareholding structure etc from a tax perspective. As someone said earlier, I'm sure most of us do it for free as a goodwill geture to try and win your business anyway.

Puma

[lje]

You do not need to include an accountant in setting up your company. This can be done through many routes and there are loads of companies on the internet who will do this for you. There is no legal requirement to have an accountant involved.

However, in order to get your custom some accountants will set up a company for you for free. Others will do it for a fee.

[SackmanandCo]

An accountant can deal with the whole process for you ie company formation,vat registrations, set up of PAYE scheme etc.

[Wanderer]

want to start my own limited company. But I have one question. What is the role of an Accountant in company setup?

It sounds to me like you're gonna have more than one question.

After you have read the links that northernladuk points out , go to the PCG and sign up with a package that covers PCG membership, company formation, bank account setup, VAT registration (plus FRS), accountantcy, insurance and stuff. It will get you kick started into running your own company, there is still a lot to learn so do some research.

[northernladuk]

I am new to contracting but it is clear to me that I do not want to continue with umbrella companies for a long time and want to start my own limited company. But I have one question:

What is the role of an Accountant in company setup?

Have you read the stickies in this forum and also the link to the right hand side? Have a look at some of the accountants sites and see what the services they offer are. Go look at Companies House website and read up what they do. After that it should all be just that bit clearer.

[vikasgupta]

I am new to contracting but it is clear to me that I do not want to continue with umbrella companies for a long time and want to start my own limited company. But I have one question:

What is the role of an Accountant in company setup?