Currently in an IVA, and considering starting a Limited company to do some additional freelance work.
I understand that any additional income would be shared with my IP to share with creditors (50 % ?).
But would being in an IVA cause any issues when setting up the company with an online provider such as 'Companies made simple' or 'Company formations 247' ?
It would be a one man band i.e. solitary director / shareholder.
Hi Ben. The only obstacle would be finding a business bank account ( required by a Ltd Co.). Barclays have helped some -- but it is a hit and miss procedure. The computer will say "no" but a good branch manager might override it.
Do you need all the hassle of a Ltd Co for your freelancing ?
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The freelancing is in the form of a service, in this case - training.
Professional indemnity insurance is obviously a necessity, and being the 'over thinker' that I am - just considered that a Limited Company would be a better option than a sole trader ?
It's funny, I thought that I had considered all the pros and con's, options and pitfalls - didn't give a business bank account a thought !
I agree with Foggy that you may well find it difficult to open a new business bank account.
PI should cover you whether you are a sole trader or a limited co.
Protocol complaint IVAs state that you would need to contribute 50% (net profit) of any additional income you earn. The other 50% is for you to keep, not your IP.
