Wat wod u say 2 convince a UK sole trader 2 change their legal status 2 either a 'partnership' or a 'limited C

Question

sori cod not fit all the words. had to shorten it

Answer 1

It depends on so many factors but the main one being, do they have any personal assets that are at risk if the company went broke. If the answer is yes then as a sole trader they could lose these assets, house etc if the company went broke and owed money. As a limited company only business assets are at risk not personal. The partnership is a harder one, the only reason someone would do this is if another person was investing and wanted a share / partnership agreement, or if another person was being given a share of the company in return for something other than money (such as intellectual rights etc)

Bit of a minefield though.

Answer 2

I'd tell them to consult an accountant before doing anything of the sort. I'm a sole trader and as far as I can see there would be no benefit to me in changing my status. Maybe if I earned a great deal more than I do,

Answer 3

how would it be if you wrote in plain ENGLISH

Answer 4

if your business fails, everything you own will be taken away, if you are an LTD not only does it look good after your name it will stop your personal stuff being taken by bailiffs

Answer 5

I wouldnt. What would be the point? Why would you want to?