Wait for first contract before forming a company?

[dbairduk]

Hi,
would it be a good idea to form a company now, or should I do this on signing my first contract?

A bit anxious to get things rolling.

[cojak]

No it would not be a good idea. Quite often clients need you within the week and contracts need to be turned around quickly. You can only do this if you already have the Ltd company up and running.

[Jessica@WhiteFieldTax]

You can wait till you get a contact to form a company, and you can get the bare bones done almost instantly. Any accountant you call will curse you under their breath, and you won't be able to be paid pending bank account, PAYE registration, VAT maybe, et al.

If you can take the risk, or if you know there is a dead cert contract in the pipeline, give yourself 4 weeks leeway. Most accountants would waive monthly fees for a initial period like this.

[kaiser78]

Same applies ideally with business bank account.

[Ltd Dave]

Hi,
would it be a good idea to form a company now, or should I do this on signing my first contract?

A bit anxious to get things rolling.

Hi,

I myself have just fallen foul of not getting my Ltd company set up quick enough in advance, in particular my business bank account. My problem was that I was working and not able to visit my bank in person. I am still waiting for my bank account to be opened. Hopefully it will be this week.

Thanks

[VectraMan]

Bank account is the hard bit in my experience.

The flip side to this is if you set it all up, then fail to find a contract and take a permanent job, you'll have to shut it all down again.

[kaiser78]

Hi,

I myself have just fallen foul of not getting my Ltd company set up quick enough in advance, in particular my business bank account. My problem was that I was working and not able to visit my bank in person. I am still waiting for my bank account to be opened. Hopefully it will be this week.

Thanks

You can open bank accounts online these days without having to go to the bank in person. Useful thing technology...

[Ltd Dave]

You can open bank accounts online these days without having to go to the bank in person. Useful thing technology...

Thats what I was originally told but when it came to it the bank required me to go in with my ID docs......passport and proof of address. They wouldnt accept certified docs in the post. That may just be the criteria for the bank i have gone with and there may well be banks out there that dont need to see you in person. Do you know which banks dont require a personal visit ? thanks

[kaiser78]

Thats what I was originally told but when it came to it the bank required me to go in with my ID docs......passport and proof of address. They wouldnt accept certified docs in the post. That may just be the criteria for the bank i have gone with and there may well be banks out there that dont need to see you in person. Do you know which banks dont require a personal visit ? thanks

I opened my business account with Santander. Done and dusted in a matter of days.

[socialworker]

You can open bank accounts online these days without having to go to the bank in person. Useful thing technology...

You would think so but I applied online for a business account with HSBC on 19th March, I am told it should be open on Monday 15th April, that is with me having a current account with First Direct so not having to do the identity checks. It saved no time at all doing it online as I had to answer exactly the same questions over the phone, indeed being asked the same question several times over, taking about an hour.