How to form an umbrella company?

86JR

86JR

86JR

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Hello,

I need a new limited company forming, but I need to be able to transfer cash from my current business account to the new one without paying tax on it, is this possible?

I have a few options it seems, but no idea what to do and don't really want to pay for advice as that could be a waste of time if the information is out there for free.

I currently own one limited company that deals with ecommerce and physical products, which is tied to a business bank account.

I am starting another venture and am unsure if I should just form another LTD and get another business bank account, or transform my current company into an umbrella company, and then this means I can move money from that bank account into the new one without paying tax on it, would I need to register 2 new companies in this case or can an umbrella trade as it's own entity?

The other option I have is to use a new name as a trading name under my current company, and use the same bank account.... do I have to register this as a company or can I just use any old name, what stops someone from registering the name as a company and then stopping me from using it? Also using the same account could make accounting tricky especially as the income comes from the same company!

What is the best option? Thanks.
 
First you need to start with a source of umbrellas like an umbrella wholesaler, then maybe think up a unique design or line that you want to go with and that should be a good foundation to begin.
 
The money belongs to the company and if any tax is owed then it needs to be paid. You can't convert a Ltd company to an umbrella as they are different entities.

You could minimise the tax you pay by winding up the company and take the money out via entrepreneurs relief (pay CGT at a rate of 10%) but any tax the company owes still needs to be paid.

If you want to start an umbrella company then speak to the large contractor accountants as they will sort it out for you and they will give you all the advice you need if they think you are going to go through them.
 
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Ask your accountant.

But in short you can trade under any name, you'll just had to add it to your bank account ie ECOMMERCE SOLUTIONS LTD T/A STEVE'S PLUMBING. That's easy enough but depending on how generic or specific your Ltd name is it can be confusing to customers if they need to know your name for cheques, invoices, etc.

We have 3 Ltd companies and 3 trading names.

I also don't know what 'rule' we do it under but we often transfer money between two as a director's loan. You don't pay any tax on the transfer but of course any profit is still payable at the end of the year. Again, ask your accountant.

On the point of trading names, you're confusing registered companies and trademarks. If someone owns Steve's Plumbing Limited there's nothing stopping anyone else running a company with that name (Steve's Plumbing), they just wouldn't be able to have that as the registered company. Even if another company then decided to register Steve's Plumbing as a trademark then Steve would most likely still be able to trade so long as he could prove he was already doing it for long enough. Also Steve's Plumbing wouldn't be a legal trademark because trademarks can't describe the product or service you offer (Plumbing).
 
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I would get quotes for manufacturing from china first but don't get those rubbish ones that turn inside out when it is too windy. Start small sell them outside tourist attractions from a barrow (non english tourists nearly never have a brolly when on holiday). Sell them at a £5 a pop then when you have a bit of capital. Hire some staff with other barrows.

Don't step on any toes though someone might already have that pitch and it might kick off. The peanut sellers have a side trade with their mates selling brolly's and they dodgy. I am sure the peanuts are bird feed ones covered in sugar and sold, I would never buy any from them.
 
Set up new Ltd, old Ltd buys the shares with their cash. Ltd 1 now owns Ltd 2, congratulations you have a corporate group.
 
Hitman_Leon said:
First thing I thought of when reading thread title :p
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+1

ut3j.jpg


DONE.
 
I am not on about dodging tax from profits, I am on about moving money between entities without paying tax twice - that's the bonus of an umbrella corporation. I just don't know about going about it. I put money into my current LTD but I didn't do it via director loan as I was already trading as a soletrader, so I don't want to have to take that money out and pay tax on it only to put it back into the new company (minus tax!). I just want to move it. Most of the money I currently have invested is in stock, I have 11,000 audio cd's for example in storage.

I am not disclosing what I do on here but I will say it is nothing illegal.
 
86JR said:
I am not on about dodging tax from profits, I am on about moving money between entities without paying tax twice - that's the bonus of an umbrella corporation. I just don't know about going about it. I put money into my current LTD but I didn't do it via director loan as I was already trading as a soletrader, so I don't want to have to take that money out and pay tax on it only to put it back into the new company (minus tax!). I just want to move it. Most of the money I currently have invested is in stock, I have 11,000 audio cd's for example in storage.

I am not disclosing what I do on here but I will say it is nothing illegal.
Click to expand...

Listen to Pudney then as he is an accountant
 
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