Nail nation
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I do ss on a rolling lease, so there is no end date. I just end the lease with 30 days notice xx
Salon Owners
- Thread starter SmillieShellac
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squidgernetball
Ubergeek
Surely you can change how you run your business, regardless of the lease. If you become Ltd after 3 years, then you are Ltd. I don't understand how your lessor can dictate those terms - if indeed it is them. Is there room for negotiation? My lease had a 2 year break clause both ways, which I renegotiated, and I signed as a sole trader, but if I go Ltd, then I go Ltd. I'm no longer a sole trader, regardless of my lease!
It sounds like a massive commitment to go Ltd before you've even signed the lease. Are you up and running with clients? We moved to our salon on a shoestring, with a large existing client base, and money is as tight as anything!
The thought of paying whopping accountant fees on top would horrify me!!!
BannerPenguin
Well-Known Member
I think it gets tricky. A sole trader is just that. Trading as yourself under a random name.
I think it would need to be LLP - limited liability partnership. Or be a limited company and 2 directors both with 50% share in the company or however else it is divided up.
kimi1101
Well-Known Member
Then you are a partnership, basically two sole traders.
persianista
Well-Known Member
No, they can form a partnership. You can also have a limited liability partnership.
SmillieShellac
Well-Known Member
I've been trading for 3 years renting space and I'm staying in the same area just my own salon. I'm very busy, have been solidly now for over 2 years. I've just had another call from my accountant saying he thinks we would be reckless signing a 10 year lease as a sole trader and is advising me against it from an accountants side. He said it would cost approx £500 to register and between £50-80 a month for accounts which he has said if the business is viable I shouldn't be worried but u disagree I think that's alot of money. We have taken advice from a solicitor and they say the same which is why I wanted to hear from women who are within the industry and have salons to give me your advice and see what you do as I'm feeling a bit overwhelmed! I know they are advising me on this to protect me, but it just seems so costly and as I'm looking neatly at costs I don't want anymore than I need to have. I like the idea of signing the lease and after the 3 tear break point if all going well I could change to Ltd then?! I will explore this, my accountant will not be happy. Thank you for being there Geeks as always I appreciate every comment S
virtues2011
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Your accountant probably won't be happy, they will not gain anything from you being a sole trader, times are hard in every industry he could be trying to line his own pockets, forgive me here, but they say good accountants pay for themselves! People are lining their own nest these days, these industries are no different. This is proven. With everything, use you own judgement, (believe it or not to some) I have disagreed with the HMRC and changed information from solicitors, been through three accountants and have saved lots of money and achieved results. You can have good and bad in every industry and like someone said about nails earlier "You have the good, the bad, and the ones that should be struck off" it is the same across the board. I hope you get your answer, but from the majority on here that have suggested sole trader, we can't all be wrong. Best of luck. :biggrin:
BannerPenguin
Well-Known Member
I personally don't see why accountants should be that much if you keep good records and do most of it yourself. Personal choice of course. As virtues said a good accountant worth there weight in gold but mine I personally think is fantastic and is very cheap (I do 99% myself) he just advises when needed, answers questions. signs off the accounts and does my payslips.
Cholo
Well-Known Member
I paid £150 to register my limited company (through an accountant) and so think you're paying quite a bit for someone's time there....!
It's worth remembering that you pay an accountant and solicitor to be risk averse - they will provide you with the information and then it's for you to consider whether you can manage any potential risks. If they didn't tell you the worst case scenario and it all went ti.. belly up then they could be held accountable for it.
Ask yourself what are the risks? What's the possible occurrence and most crucially what the likelihood is of that happening. If you believe that the likelihood is low / low- medium then it's possibly a risk you might want to take.
It's worth remembering that you pay an accountant and solicitor to be risk averse - they will provide you with the information and then it's for you to consider whether you can manage any potential risks. If they didn't tell you the worst case scenario and it all went ti.. belly up then they could be held accountable for it.
Ask yourself what are the risks? What's the possible occurrence and most crucially what the likelihood is of that happening. If you believe that the likelihood is low / low- medium then it's possibly a risk you might want to take.
squidgernetball
Ubergeek
I was quoted approx £150 to register a Ltd company and then about £50-80 per month to run my accounts. That cost seems to be standard(ish) for Ltd company accounts x
squidgernetball
Ubergeek
OOh! Don't know - maybe because I couldn't be bothered looking at other options. I was told the actual registration was £150. That was as far as I got!
BannerPenguin
Well-Known Member
My registration was around £20.00. Yes £20.00. That's with a company doing it online and guiding you through it! If wanted to do it yourself it's even cheaper but as anything I find online easier then filling in and posting forms 
Cholo
Well-Known Member
The benefit for me of registering with an accountant is that they put their address on it as my contact address for the first year. This means that they can address all queries directly it also means that I avoid all the spam that can be sent to you when your address is visible.
BannerPenguin
Well-Known Member
If you have an accountant you can still do it yourself and ask to use there address. You only really ever get HMRC letters which in all honesty I would like to read and keep check on.
There's is also the option of a virtual office or PO box (not sure on the latter). Horses for courses
virtues2011
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Do you mean registering your business at companies house has your accountants address on....This is quite common and does indeed reduce the risk slightly of losing any important letters that need attention. :biggrin:
virtues2011
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If you have an accountant you can still do it yourself and ask to use there address. You only really ever get HMRC letters which in all honesty I would like to read and keep check on.
There's is also the option of a virtual office or PO box (not sure on the latter). Horses for courses
I see your point here Banner, and I agree with you, but for some people just the mere thought of trying to work out the fundamentals of accounts and the tasks associated with it is a minefield. :biggrin:
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