I briefly speak about the complications of trying to start a company in the UK and the difficult choices one has to make.
The most difficult decision that I have to make now is to decide between two different types of Legal structure. On the one hand there is PLC(Private Limited Company) and on the other there is LLP(Limited Liability Company). The type of company I want to create is a trading company with a 50/50 split between two partners. The company isn’t expected to have high overheads and the cash flow and profit will be marginal.
There are certain elements of creating a company that is attractive. One thing that I find important is avoiding personal liability. Another is uncomplicated divide of taxation between partners themselves, and between the partners and the company.
The difference seems so negligible apart from the fact that a PLC seems more simple to set up, and that you need to be in a partnership to form an LLP.
WHAT RESEARCH I HAVE ALREADY DONE
of course I have researched companies house and I have looked at gov.uk and I have also had a phone call with business link helpline. But nothing government sponsored has yet helped me clarify the difference between company types.
MEETING WITH LAWYERS
After meeting with a group of practicing lawyers than run a free seminar (Start-Ed) for start up companies, which is run by City University, I spoke with an astute corporate lawyer who laid all my doubts to rest. She immediately told me that PLC was by far the most obvious type of company for something small like the idea I have in mind. She also explained share structures, company loans and company debt. The responsibilities of limited liability and the idea of a contract. I did forget to ask certain questions and because of my nervousness at the time I might have forgotten several questions and I didn’t take notes. But the experience was very useful and I would gladly do it again. Perhaps the most important thing I forgot to ask was if and how to write up the articles of association that outlines the agreement between partners, and get advice on its content. This will be a difficult task to contemplate.
The next steps I need to carry out with regard to my company are to lay down the rules regarding setting up a company in a home residence. I have to speak to the mortgage company and I have to ask my local council if I can register a company in my residence and what are the limitations.