Need advice about closing a ltd company

C

ceecee

Guest
Hi everyone,
first post on here but long time reader. Which makes me feel even more stupid for having to post this!

I foolishly (based on advice) set up a Ltd. company before Christmas. I really should have gone the sole trader route & now I don't know how to go about reversing the situation.

I want to completely shut down the Ltd. Company. When I started it I lodged my own money to the account and I have bought stock. Myself & husband are directors and I am the 100% shareholder. Apart from buying stock and a couple of business to business transactions(paying for website etc.) there has only been one very small sale. I have registered for Vat and having only been in a refund status I realise I would have to pay this back. (around 800e) Also personally finances are non existent so terrified of how much closing up could cost!

As I have no idea what way to go about this I have been paralysed against doing anything & its getting silly now.

What are my options regarding shutting down the Ltd company and going at it as a sole trader? Are you allowed do this? would it be members voluntary liquidation?what happens the stock and money I have put in? I do still want to have this business/love my idea but not as a Ltd. company(wish I had never done that now)

Thanks for reading-I'm so confused..hope to get some great AAM advice
 
Why do you need to close it if you are going to continue to trade?

Getting your audit exemption and filing your b1 on line will keep accounting costs low.

If you do close, the voluntary strike off route is the most cost effective
 
Hi Contemporary, Thanks for replying

Reasons for wanting to close it are things like
accountancy fees will be more & if sales are so low will I have to put money in personally to pay them,
the extra filing etc involved in being Ltd.,
i dont see the business taking off on a big scale and wish to run it in my spare time as extra income & try to get paye employment,
my husbands job is not looking stable and I'm worried that being a director will affect him should he lose his job in regards to benefits,
alot of personal issues at the moment & stress is making me realise I jumped in to deep and need to scale back and do things one step at a time.
I was being made redundant and panicked with what was a good idea as a business but that I didnt properly research.

As far as the voluntary strike off route, I have been looking into it but I am confused re: stock in business and money I put in..what happens to these? the business owes nobody else anything and there is feck all in the bank account.

thanks
 
+1 with contemporary above.

It would seem that in the short term closing down the Ltd company will cost money it (or you) don't have.

I think you need to figure out:

  1. What are the costs associated with closing down the Ltd. Co. and setting up as a sole trader?
  2. What are the costs associated with continuing to trade through the Ltd. Co.?
and take which ever option is less costly.

With regard to the VAT registration, if most of your sales will be with unregistered consumers (and you are under the mandatory registration limit) then deregister and repay the VAT refunds already claimed. Maybe you can use the VAT-free selling price you charge as a short-term competitive advantage

If most of your sales will be business-to-business, even if you are under the mandatory registration limit, leave the VAT registration in place.

I suspect however the real dilemma is whether you have a viable business at all and the Ltd Co. stuff is just a diversion from the real issue at hand.
 
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With an audit exemption you could do the accounts yourself and file on line, cost €20, but I dont know if you are up to it to be honest. Your husband is only affected from a benefits point of view if he is on S rate PRSI (self employed or directors who own more than 15% of the company)

If you voluntary strike off you will lose the money you put in, cant advise on the stock as I've only service industry experience. but if its only a couple of hundred quid worth I'd look at flogging it on ebay, other people in the trade, hang onto it for yourself.
 
Ceecee,
Step 1: Don't Worry
Step 2: Make sure your B1 return has been filed with the CRO
Step 3: Deregister from VAT www.revenue.ie/en/tax/it/forms/trcn1.pdf You will have to repay VAT recovered.
Step 4: If you are the only creditor then you can have the company struck off the register. A number of steps are required:
You will require a letter of no objection from the Revenue.
You will have to publish an ad in a national newspaper. Try ads for €119.
File Form H15 with the CRO with the above.
Check http://www.cro.ie/en/business-termination-voluntary.aspx
Not going into the merits of company verses sole trader because if you would prefer to be rid of the company then get it struck off.
If you need any assistance with the forms PM.
C.
Part time accountant.
 
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