Discussion in 'Business & Tax Advice' started by TheMoneyWizard, Apr 4, 2015.
It takes 10 minutes to set up a limited company online.
It will take an hour to see an accountant who will set you up for VAT (if it looks like you will turnover more than 82K), the accountant will cost you about 2K a year (cheap one).
The accountant will pay you in dividends or recommend you reinvest your earnings, either way you will end up paying 20-25% tax, IMHO.
Go see an accountant, nobody will give you real advice online. Alternatively read all you can as it is all based on tax code you can usually get a good idea and just be left with 1/2 real questions vs. what should I do.
Don't know the UK tax code but given you are sole member LLC(basing on US tax code) there could be either pass through or coproration taxation. Pass trough comes with the same taxes (after deducting expenses etc) as sole proprietorship does but so easy you can do it yourself. If you elect to be taxed as corp you can save some taxes but will need to do payroll, real tax return etc. and have to weigh in whether its worth it for you.This is no tax advice,just my opinion. Go see an accountant! Most even do a free initial consultation. So if you can ask them 1 or 2 specific questions vs. what is the best, you should be good. Good luck
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