If I create a LLC (Limited Liability Company) in the UK, would that cost something if my biz is not working?

Question

I don't speak about fees to create the Company of course, that will cost a little bit.

But let's assume I create a LLC. Finally I don't find any clients during 2 years. Will y have to pay some taxes even if my business is not working to keep the company "alive"?

So is there any annual fixed taxation that doesn't take into account the company income? If so how much?

Answer 1

No once you have paid to set up that is it. If you make a profit over and above your allowances then you will be liable to pay tax but only then. You could register for VAT and claim for the VAT back on more than you think. Get an accountant to help. Also, being a company will enable to take advantage of such things as buying things from places like Macro and wholesalers and therefore save on many many things.

Answer 2

Maybe would be better if you would make a dormand report and annually an annual return.

Answer 3

There will be a few admin fees and admin tasks - such as filing an annual return (lists the shareholders of the company), filing abbreviated annual accounts (with a balance sheet outlining the company's assets) and a dormant corporation tax return (no fee - just time). Filing fees will be nominal - approx £40-£60.

There is no annual fixed taxation.

If you don't intend to be active for 2 years it may be worth waiting to set the company up. Generally speaking you will find it easier from an admin perspective and more benefical from a corporation tax perspective if you don't incorporate until the company is turning a decent profit. I'd recommend considering operating as a sole trader / partnership instead till the business gets off the ground.

In case it helps all limited companies have limited liability - you may find it easiet for others to understand if you refer to it as a limited company not a LLC (not sure that actually means anything at all - perhaps it is American?). You may be thinking of an LLP, which is a limited liability partnership?

Answer 4

You will have to complete an annual return whether you have traded or not. The filing fee is £30 or £15 for filing on line.