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Thread: One for the traders/RFDs

  1. #1

    One for the traders/RFDs

    Asking this question via the forum but appreciate that you may not wish to answer publicly in which case any advice or experiences via PM would be appreciated.

    For those who are sole trader RFDs have any of you managed to find an insurance / some form of cover that provides you with the liability protection offered by running an RFD as a limited company.

    I appreciate that going limited offers a large numbers of other benefits, but for a small scale RFD the limited liability seems the only tangible advantage. Also, running as a sole trader would be simpler in many of the aspects compared with a limited company.

    Thanks in advance of any advice or experiences that you can offer which is most appreciated.


  2. #2
    not an RFD but I cant personally see the benefits of running any business as a sole trader vs a ltd company.

    I am on my third Ltd company and have recently been looking into branching out into another business to run in tandem with my current one.

    The liability cover from a creditor or litigator perspective is the first one I would cite.
    Outside this the cost benefits from sourcing goods, to offsetting VAT to just being able to manipulate your company's financials are a no brainer.

    I have also just been getting quotes for insurance for both public liability and general cover. all the underwriters seemed more open to covering a limited company vs a sole trader.
    It is just cleaner in my opinion

  3. #3
    14oth are you by yourself or do you have a partner ?? If you have a partner an option could be (LLP) Limited liability partnership. It gives you the limited liability protection of a company, but seems to work well if your a smaller firm, The partners are liable for their own tax individually, you basically pay tax on what you take out of the business. Not a great deal of difference to being a sole trader, but with added cover.

  4. #4
    major difference in taxable liability on partnership drawings and dividends.

    LLP is only of any real use for businesses that are not allowed to trade as Ltd Co, E.g lawyers

  5. #5
    Thats a new one on me bud, one of my firms is an LLP and theres nothing stopping me trading as Ltd, my partner also has a Ltd co. The only reason i sugested it was because the op came across as wanting to keep things simple yet have a bit of protection. It works well for us.

  6. #6
    Ah, changed in 2000 it seems!
    Limited appeal | Features | The Lawyer
    used to be the case, no longer.

    still the mere fact that a huge number moved to LLP must mean something.

  7. #7
    Thanks for the replies and PMs which were most appreciated.

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