Key Post Sole Trader or Set up a company - other considerations

[Brendan Burgess]

An interesting story in the Sunday Times.

The woman set up a limited company.

Then decided that the admin was too much so opted for an umbrella company.

She wound up the limited company.

But bizarrely, she continued to use the ptsb bank account of the company as her business bank account.

She had €14,000 in it, when ptsb copped on and froze the account.

The only way to get the money now is to reinstate the company.
As it was three years since it was closed, she has to apply to High Court.
Then she has to have the accounts audited.
And she has to pay late filing fees.
And, then, she will have to liquidate the company again.

The costs will exceed the cash in the company.

Brendan

 

[T McGibney]

The only way to get the money now is to reinstate the company.
As it was three years since it was closed, she has to apply to High Court.
Then she has to have the accounts audited.
And she has to pay late filing fees.
And, then, she will have to liquidate the company again.

The costs will exceed the cash in the company.

Brendan

Hi Brendan

She won't have to liquidate it. Far easier and cheaper to do a voluntary strike off.

She should investigate whether or not ptsb were within their rights to freeze the account. I have come across cases where people traded for longer periods through companies that had been long struck off. There was no real difficulty as all that had happened was they they unknowingly had become sole traders and lost limited liability protections that they never needed,

If this doesn't work, her €14,000 is gone.