Sole trader or Ltd Company? Help needed!
Hi guys,
When I opened my amazon account I opened it as individual (see screenshot below of what I mean by individual) because I was not sure how sales were going to go, however as they have increased I am looking to convert into either a sole trader or limited company but I am unsure on which way to go. My accountant has said ltd company for obvious reason but I am slightly worried about how long it will take to verify.
So would it be better to change to sole trader (see screenshot below of what I mean by individual), and if so how long would you reckon it would take to change over? Is there anything I need to be careful of? & is there anything specific I will need to get ready?
Or would it better to change straight to limited company (see screenshot below of what I mean by individual)? How long would this take and is there anything specific I need to get ready?
If my business does really well I guess I would look to change to limited company in the future, but would changing from sole trader to limited company be more of a headache then actually changing from individual to limited company now?
thanks for your help in advance!
7 replies
Seller_qZO3ZCjoBXEeL
If you have been selling for profit then you have already been trading as sole trader. You should have been registered with HMRC as a business. Are you registered with HMRC as self-employed currently?
If you aren’t already registered correctly with HMRC then any change may trigger a review so I would recommend to change to the entity type that you will eventually need, rather than having to change again in the future.
Seller_DROodOAYHftnc
The ‘Individual’ is the selling plan you have chosen and nothing to do with being a business or not.
As a business you can choose to either have an Individual Selling Plan or a Professional one (which costs £30.00 a month), but whichever, if you are a business you should still be registered with Amazon as a business (and HMRC)
I know nothing about limited companies, but I am a small sole-trader business who was on the Pro plan, but because sales have fallen I have downgraded to an individual seller, but I am STILL a business.
