Moving from partnership to ltd company
Both I and Mrs deadgoodundies have been running our business as a partnership for the past 15 years.
This year we intend to become a limited company.
Are there any pitfalls anyone can think of in regards of changing the business type within our Amazon account prior to us making the change.
Just thought best to be informed before we do it rather than find out an issue later.
0 replies
Seller_EJIX7rqDNQJi2
I would advise you to e-mail seller-verification-enquiry@amazon.co.uk before making any changes to your account information, as doing this can often trigger an immediate account review and a suspension.
Seller_vIpv9uvBH6CFY
I just succesfully managed to change from sole trader to LTD with no suspension!
As Kika mentioned, send them an email. They will email you back requesting details and some e verify documents to sign. After e-signing the documents, the performance notifications flag will pop up, requesting the new bank statement upload.
Although the account came ‘under review’ for 2 days with a warning banner once the performance flag appeared, the sales were not stopped and business continued as usual. The verification completed with 24 hours of my final upload.
The only minor inconvenience is changing your payout to the new bank account, as that initiates a 3 day hold on withdrawals.
The verification went very smoothly and quickly. It’s worth noting I was changing as the only employee of the new company, so there were no other individuals involved besides me, and also my VAT number and address didn’t change, and of course I had the bank statement ready to go. So that may be why it was so easy in my case.
Definitely email them though, there are plenty of horror stories on here about 3 month long suspensions while waiting on re-verification!
Seller_AHoQHizxQmjDj
All good advice from your previous replies. We did this about 15 years ago without any problems, but we covered everything through an accountant and then via Amazon.
We found that the value of the partnership (particularly stock) was transferred to the limited company as a loan. This means that if the company is ever would up, or sold, then that loan comes back to you tax-free.
