Help - Need to form a Limited company within today!!

**Craig@Clarity** · 22 December 2010, 12:31

You need to ensure that you set it up correctly with the right directors and shareholders. You need to consider where your registered office and service address is. All the agency should require is the company name, number and copy of the incorporation certificate to set the contract up. Normally, the incorporation of the company takes 24 hours but it's usually about 4 hours for a response from Companies House to say it's now registered. Check out who the free banking is with and ensure it is not just free banking for a certain period.

Once your company is setup, you need to think about setting up the VAT and PAYE scheme for the company but that can follow later as you mention.

**new2c** · 22 December 2010, 13:07

Originally posted by Craig@InTouch View Post

You need to ensure that you set it up correctly with the right directors and shareholders. You need to consider where your registered office and service address is. All the agency should require is the company name, number and copy of the incorporation certificate to set the contract up. Normally, the incorporation of the company takes 24 hours but it's usually about 4 hours for a response from Companies House to say it's now registered. Check out who the free banking is with and ensure it is not just free banking for a certain period.

Once your company is setup, you need to think about setting up the VAT and PAYE scheme for the company but that can follow later as you mention.

Thanks very much.

Just been advised by my friend to not to hurry with the company formation thing without taking proper advice. He has advised to go with a reputed umbrella instead.

But, the contract which I am getting is 3 months only. I am in favour of forming my Limited company but don't want to make a mistake.

- If I go with an Umbrella now - Can I then switch to my Limited after a month - for the remaining two month duration. Will the Umbrella/Agency try to create a problem if I do this?
- Also, I have been told that I need to get 'personal liability insurance' and/or 'business liability insurance' at the very start. I may switch to a permanent role after the 3 months of contract finishes. Will I have to pay for a full year of insurance in this case?

I have heard of three umbrella companies which have good reputation - Giant, Parasol and ContractorUmbrella. Can someone recommend which one I should go with.

**Craig@Clarity** · 22 December 2010, 13:19

Originally posted by new2c View Post

- If I go with an Umbrella now - Can I then switch to my Limited after a month - for the remaining two month duration. Will the Umbrella/Agency try to create a problem if I do this?

This will be a question for the umbrella/agency.

Originally posted by new2c View Post

- Also, I have been told that I need to get 'personal liability insurance' and/or 'business liability insurance' at the very start.?

If you go brolly, I think you will be covered under their insurance as an employee.

**realityhack** · 22 December 2010, 13:27

Originally posted by new2c View Post

Giant, Parasol and ContractorUmbrella. Can someone recommend which one I should go with.

I can only speak from personal experience - I've used Giant and ContractorUmbrella in the past - and I found the latter to be more helpful.

**badger7579** · 22 December 2010, 14:07

Depending on the wording of the contract you may need to consider the implications of switching from Brolly to limited in the middle of a contract if it is caught by IR35. With a Brolly IR35 is irrelevant.

My suggestion would be go with the Brolly for the 3 month contract and use a Ltd for your next contract.

**Clippy** · 22 December 2010, 14:41

Originally posted by badger7579 View Post

Depending on the wording of the contract you may need to consider the implications of switching from Brolly to limited in the middle of a contract if it is caught by IR35. With a Brolly IR35 is irrelevant.

My suggestion would be go with the Brolly for the 3 month contract and use a Ltd for your next contract.

^WBS

It doesn't make sense to go brolly for a month, then Ltd, then cease trading as you have gone permie.

Go brolly - lots of information for your scenario on the site which can be found using the advanced search feature.

**GillsMan** · 22 December 2010, 14:54

Just to echo what the above two said, I started my first contract last April and I went with an umbrella first of all while I got to grips with contracting and gave myself time to consider the pros and cons of running a Ltd co.

It's not something you should take lightly as there are certain responsibilities you must fulfill, obligations you must meet, and all that jazz.

After my initial three months was up I went via MyCo Ltd. Even though sometimes I think about the tax I paid in that first three months via the umbrella co and kick myself, mostly I'm glad I did it this way and am much more confident I know what I'm doing.

So just go via an Umbrella co. for now.

**SallyPlanIT** · 22 December 2010, 16:30

Originally posted by new2c View Post

In all the excitement for my first post here, I missed the links in my post - My previous post (without the links) is also awaiting moderator approval. Mods - please remove the previous post as it is incomplete. <mod>Happy for people to Google the company names, but we don't encourage commercial links here</mod>
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Hello , I have to form a Limited company within today and have to give the details to the agency.

I have come across these websites (from another forum) and their 'basic' package(s) seem to be economical and cheap. One of these below, is offering the basic package only for £16.99

<mod>links removed</mod>

simpleformations
company-wizard
smartcompanyformations
companyformations247

- Should I go with one of these
- Will I compromise with my personal info if I go with one of these
- Do these company formation agents have turn around time of 4 hours as listed in their offering
- They are also offering 'free business bank account'. Is there a catch?
- Is their any other catch - if I go with one of these? - Like making me pay more later.

I plan to hire an accountant for VAT registration in a week's time. Right now I just need the company name and number within today.

I made an incorporation at 10am today and received the incorporation paperwork at 3.45 - companyformations247

**Wanderer** · 22 December 2010, 21:36

Originally posted by badger7579 View Post

My suggestion would be go with the Brolly for the 3 month contract and use a Ltd for your next contract.

Agreed. Don't go limited if you aren't sure what you are doing or if you don't know that you will be contracting for at least a year. An umbrella is dead simple to get setup with an no hassle.

Get set up with a brolly for the initial contract and then review the situation before the 3 month contract expires. At renewal time, you can switch to a LTD if that's what you want to do.

If you are a complete noobie at running a company, I'd suggest that you get an accountant engaged up front and get their advice before you form the company. Alternatively, join the PCG who will kick start your contracting with an accountant, legal advice, company formation and insurance cover.

Help - Need to form a Limited company within today!!