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Implications of Setting Up a Second Business Through an Existing Limited Company - #AskAMS

I’m setting up a second business. Should I run it through my existing limited company? Well, according to the experts at AMS Accountancy, there are good points as well as bad points.

The answer is yes if:

  • Customers are similar
  • It’s simply an experiment
  • There are no VAT implications
  • Admin & time is minimal (bookkeeping, insurance etc.)
  • There are no unfair outcomes for shareholders.

The answer could be no if:

  • Your current Company is VAT registered and sells to VAT registered businesses. (If your new business sells to consumers, you may want to avoid charging them VAT).
  • The businesses have different investors/participators, sharing the same name causes problems.
  • One business offers customers credit and gets credit from suppliers - risky if they fail.
  • If one is asset rich – its assets could be at risk by the activities of the other business.  

You really should seek advice!

 

AMS Accountancy Swindon and Wiltshire

AMS Accountancy Ltd

AMS Accountants in Swindon provide a complete accountancy service for small businesses in Wiltshire and a monthly accountancy service for contractors throughout the UK.

Delta 606, Welton Road, Swindon, SN5 7XF

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