Self Employed Companies.

Social And Business Development Self Employed Business's

Having

been an unpaid Director of a limited company since its day of Incorporation, January 19th - 2000, I would like to make suggestions on how to set-up a Limited company, based on my practical experiences during the past 56 years. Many small 'Self Employed' business people, shy away from forming a limited company, mainly because they think it is too involved, too costly or beyond their capabilities to achieve company Director status. However, many of the 'Self Employed' also consider they would lose too many perks by having to declare all their income to the 'Inland Revenue', when trading as a Ltd company. A friend of mine who runs his own business, gives me pleasure by just being associated with him. One day I asked him, why he had not registered as a Ltd company, his reply was 'Because I have full control of my business, without having to refer to anyone'. By NOT being registered as a Ltd company he could in the future, lose all property he progressively purchased with profits from his successful business. The average small 'Self Employed' business is usually controlled by ONE person and his/her - wife/partner, both sharing the day to day decisions controlling and developing their business. They would be ideal for registering as a Ltd company, providing they were prepared to declare all their company profit to the 'Inland Revenue'. The minimum requirement in the UK for forming a Ltd (Limited) company is ONE person who will act as Director for the company and ONE person who will act as Secretary for the company (The Director cannot also be the Secretary of the company). At least ONE shareholder must be willing to purchase a single 1.00 company share. The shareholder CAN be the company Director or company Secretary. The 'Self Employed' business name you are trading with at present, may not be available to register as a Ltd company because the name may have already been registered. This means you would need to consider several trading names, until you find one that has not been registered, as a Ltd company.

However, It's NOT wise to appoint your wife/partner as a Director, if it can be avoided but you could appoint he/she to the position of company secretary because if he/she is appointed as a Director, you will experience problems in the future. It is also NOT advisable to appoint your Sons and Daughters as Directors because they will only appreciate their own personal interests and must be allowed to explore their Eager Desires. The seven steps that follow, will guide you to forming your own Ltd company. Step One: - Decide on a name, you may have to consider two or three names before finding one that as not already been registered as a Limited company and see if the company name you want to is available to register. Follow step two for personal free online one to one company formation service. Step Two: The Company Warehouse ONE to ONE service is: FREEPHONE 0800 0828 727. When asked who will be the Directors and secretary of the company. Just nominate yourself as Director and your wife/partner as company Secretary. It would NOT be wise for you both to be Directors. Step Three: - After completing step one and two above - Phone 'Companies House' in Cardiff: Phone number: 0870 33 33 636 Ask to be mailed the form for appointing company Directors. As at March 8th - 2009 the form number for appointing a Director is: 288a. Step Four: - Have 10 letterheads printed that carry your company logo and registered Ltd company name. Your company registration number and Directors names and titles are to be printed at the bottom of on the letterhead. Your printer will be aware of a Ltd company letterhead format. If you or your wife/partner has computer experience, you could design and print your own letterheads. Step Five: - Make an appointment with your bank and advise them you are changing your 'Self Employed' status to become a 'Limited Company', they will then advise you based on your trading history and open an account and issue a new check book and debit cards for your new Ltd company. They will also advise what you must take with you to the meeting.

Step Six: - At the meeting with the bank, when they ask who will be Chairman of the company. Nominate yourself as Managing/Director and Chairman. The bank will also require a company letterhead and ONE copy of the 'Articles of Association' - Several copies of the articles of association are enclosed in the pack you receive from the company that registers your Ltd company. Special Note: Although not Mandatory, the most important requirement when forming a Ltd company, is to appoint a minimum of (3) Directors because with less than (3) Directors, the business cannot develop Democratically. Step Seven: - Providing you have followed the Six steps above, you are ready to appoint two PAID or UNPAID fellow Directors. The (3) Directors will control and develop the company. Although, relatives can be appointed as advising paid or unpaid Directors. it's NOT wise to appoint them as Directors, if they live together. Many practically experienced retired trades people, would be prepared to be appointed to a Limited company and provide advice as an Unpaid Director. However, they would expect traveling expenses, from and to their home, when attending company meetings. Alternatively, a Director who lives too far away to attend meetings, could be sent clarified questions that need ONLY a YES or NO answer. The information would then be sent back to the company by the Director via postal recorded delivery service, prior to the meeting. UK, retired people that work with a computer from home having leadership qualities and many years practical experience in a particular trade or service, may consider volunteering to be an unpaid advising Director, which would not only prove to be beneficial to the future development of a company but would also enhance our 'Social Development'. Many retired UK people are not required to complete an 'Inland Revenue' annual self assessment tax return. However, If you are a Director of a company (PAID or UNPAID) it is mandatory to submit an annual self assessment tax return. Completing an annual self assessment return via the Internet will prove to be easier that actually completing the return form with a ball point pen. Retired people that receive weekly UK 'Pension Credits' and pay little or no 'Council Tax', can be appointed as an unpaid company Director, without it affecting their benefits. However, when filling in 'Council Tax' and 'Pension Credit' forms, they must declare that they are an unpaid company Director, which can be verified by quoting the 'Tax Reference' of the company they are a Director of.

Providing you follow my suggestions above and are prepared to appoint (2) advising fellow Directors for your new Ltd company, you need only look for potential unpaid Directors, within your family, friends and colleagues. To approach a potential Director you need to know him/her personally. Write to the person and invite him/her to be an UNPAID advising Director, enclosing the appropriate numbered form, obtained from 'Companies House' Cardiff. If your offer is excepted he/she will complete and sign the form and post it back to you. The form is then signed by the 'Director or Secretary' of the company and sent to 'Companies House Cardiff', who will record details of your newly appointed Director. When writing to a potential Director, ask him/her to phone you within three days to discus your Directorship proposal. If you do not receive a response from the letter within three days, write to another potential Director; Send The Letters Recorded postal delivery. Set your GOAL to develop to a large 'Public Limited Company' (PLC). Your wife/partner may be disappointed that he/she will NOT be appointed as a Director but it is the only democratic way to have (3) Directors in a company that vote at board meeting, knowing that their vote is based on personal choice. V.A.T: - Many business people become bankrupt by NOT paying their VAT when due for payment - If you need to register for VAT ( Value Added tax) It would be wise to open a separate interest bearing bank or building society account, in your company name. This means, when a customer pays an invoice, deduct the vat value of the invoice and transfer the funds to your separate vat interest bearing account. Late VAT payments, lead to Bankruptcy. Retired for the past eleven years, I have been a 'Volunteer Driver' for a charity in Stratford-Upon-Avon. Most days, Monday to Friday. I transport elderly people to and from hospital appointments, using my own vehicle. The only payment a volunteer drivers receives is 40 pence per mile. Although I only drive about 2 hours each day, many volunteers driver about 5 to 6 hours daily.

The 40 pence per mile received, covers the cost of my vehicle road tax, Insurance and fuel I use on each journey. The interesting part of being a volunteer driver is the many elderly people I meet and transport on a regular basis. Some of our elderly are keen to be taken out for a few hours, even if it is only for a short hospital visit. To many of the elderly, personal hospital appointment visits is the only time they leave their home because many find it difficult to walk but most of them certainly enjoy chatting on their journey.

If you are retired, consider offering your services as a volunteer drive in your local area because people are progressively living to a greater age. This means many more retired people will be required in the future. Not only as volunteer drivers but to offer their Free service to many areas of concern, within our social system. After reading this page you may have decided to register as a limited company, in the way suggested. If so, please follow the SEVEN STEPS' above. However, when visiting limited company formation web sites, carefully read their 'Frequently Asked Questions' before registering your company name and achieving the status of: Managing/Director & Chairman

<><><><><><><>