Ltd or Sole Trader?

Discussion in 'Animal Jobs & Working with Animals' started by Antoniettax, Apr 13, 2018.


  1. Antoniettax

    Antoniettax PetForums Newbie

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    Hi All,

    I have recently started my Pet sitting business - we offer dog walking, doggy day care, home from home boarding and pet drop ins.

    At the moment I am trading as a sole trader but looking for advice on how others have done this and if they would rather register as a LTD company?

    Thanks in advance
     
  2. Teddy-dog

    Teddy-dog PetForums Senior

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    I'm looking at setting up a similar business soon. I will just be trading as a sole trader. I don't think there's much need to become a LTD company unless you have more than one person working for the company (so you have employees).

    From my research I'm just going to register as a sole trader as I'm not looking to have a big business.

    I'm sure others will correct me if I'm wrong through!
     
  3. Antoniettax

    Antoniettax PetForums Newbie

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    Thank you :) Im looking to just have me for the first year but hoping to expand down the line so maybe this is something I need to consider for the future but am Ok to stick as Sole Trader for now!
     
  4. Sacremist

    Sacremist Resident Piss Artist

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    There is no need to become a limited company unless you think there is any risk of becoming bankrupt after your business fails. Being a limited company means that should your business fail, and you owe money, only assets from your company can be sold to repay your debts. None of your personal assets can be touched: house, car etc. Therefore, unless you are planning to build up huge debts in your business, I don’t see any point in registering as a limited company.

    Being a limited company means your accountant will have to produce company accounts, which are more complicated than a sole trader accounts and so more expensive to produce.

    You can have employees and still be a sole trader. Unless you think you might find yourself in a position where you owe large amounts of unpaid wages and as a result have to sell assets to pay those wages, then a limited company would be the way to go, but I would hope you would have more business sense than to find yourself in this situation considering that pet sitting/dog walking is not exactly ever going to be a big business model. By that I mean you will probably never have thousands, hundreds or even dozens of employees. You will know if you can afford them or not and presumably make them redundant if money becomes tight.

    Registering as a limited company can make you look more professional especially when dealing with other businesses, but you are dealing with pet owners and I would be far more impressed with good reviews rather than someone who is registered as a limited company. I’m more likely to think: “I bet they’re expensive!” Or “I wonder if they’re a National rather than local company? I’m giving them a wide berth!” I prefer to deal with local sole traders who are either recommended or have good reviews on their adverts such as with Yell.com

    Of course, the choice is yours and others may think differently, but I would avoid registering as a limited company and I would also avoid registering for vat, because it increases your prices and unless you are in a business with a lot of vat chargeable expenses, it’s not worth the extra work. Plus, if others in your area are in the same line of business as you and they aren’t vat registered, you could price yourself out of the market.
     
    Jamesgoeswalkies likes this.
  5. havoc

    havoc PetForums VIP

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    Limited means limited liability. You won't be liable for more than you have invested. I'd be a bit suspicious of a dog walker who chose to set up a limited company to be honest - gives the impression they're setting up to avoid responsibility. Every tradesman I use is a local sole trader. Local people who have good reason to keep the customer happy are my choice every time.