Freelance Question!!
- Started
- Last post
- 6 Responses
- blessed
if I am freelancing my design services? is it worth having a Ltd Company to get paid?
- akrokdesign0
what's the pros vs. cons?
- gramme0
In the U.S. you don't need more protection than what's offered by an LLC. If your billings increase drastically at some point, you can just upgrade to an Inc.
- blessed0
cheers
- horton0
No need to unless you are planning to have business partners, shareholders, employees, big bank loans, etc.
Just incorporated a secondary business and holy shit it cost a lot of money. Taxes are much more confusing too, you have to have an accountant on it year round. Plus everything costs more when your incorporated... a lot more.
- fadein110
if you are after business loans/credit then go limited as if it all goes wrong you are not personally liable - but aside form that is a ball-ache and if you are quite small probably not necessary.
Sign up for voluntary VAT and you only pay the VAT man 10% on VAT you charge at 20% - money for old rope.
- maikel0
It is better to be registered but a bit of a pain, paperwork-wise.
I would say that if your annual turnover is less than 40k you are fine a sole trader. Specially if your clients are small shops and/or individuals.
If you are working for the corporate, they may want you to be an LTD company, specially if working for the government. Also, EVERY company will want to deduct VAT so it is good to be subscribed.
The law changed recently and now you can incorporate a single-person LTD whereas before you had to have at least a director and a secretary.
If you have spare time ask in Business Link... they give you free advise. But be quick, as I am sure that the Tories will scrap that scheme rather soon.