As a start-up small trader what info do i declare to Companies Hse at the end of Yr.1?

Question

I am currently a Sole Trader but now looking at forming a private Limited Company.

I am worried however that my competitors will be able to see how i'm trading after my 1st year accounts have been filed with them & this could affect my market credibility.

What sort of information can the public access after i have filed my annual accounts (i.e.- would they just see Share Capital or would they see my Net Profits, Balance Sheet, P&L, etc.).

Any help would be greatly appreciated here. Many thanks.

Answer 1

Your accounts would be available on request from Companies House. If you  stay as a sole trader, this info would not be available.

Answer 2

You have to file accounts but these can be an abbreviated version of the full accounts.

This is a bit simplistic but basically they will consist of a balance sheet plus a few (not very informative) notes.  

Your profits will not be immediately obvious, only the retained profit figure showing as part of shareholders funds.  This figure is after your salary and any dividends paid.

You might want to make sure that the balance at bank is not too high at the year end as competitors might jump to the conclusion this means a high profit.

Answer 3

Your affairs will become public.Your accountants bill will increase substantially and you are more likely to experience in depth tax investigations.If you don't really need to be limited don't bother.

You will also find that as a limited company you will probably have to supply personal guarantees to your major suppliers and your bank.So most of the protection is gone.

Speaking from experience it cost me far more and really got very little if any benefit.