Sub- or independent business

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Doddlebee

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My daughter is starting an e-commerce micro business. Are there any benefits for her or us for her business to nest under our Ltd company or would it make more sense to be sole trader? What are the benefits either way?
 
I think it's more straightforward for her to set up her business independently.

The advantage of doing it under your Ltd company would be that you could set her initial losses against your profits.

But I don't think that is enough for the complications involved in tying in unrelated businesses.

Brendan
 
Doddlebee said:
My daughter is starting an e-commerce micro business. Are there any benefits for her or us for her business to nest under our Ltd company or would it make more sense to be sole trader? What are the benefits either way?
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I am guessing your Ltd company is above the VAT threshold and her micro business would be below the threshold.
 
time to plan said:
I am guessing your Ltd company is above the VAT threshold and her micro business would be below the threshold.
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Yes, that is right. The purchase of stock and losses are probably of benefit to us, but the question if it there's more than that.
 
Ask your accountant. We don't know the first thing about your situation or business priorities, and as such it's impossible to advise meaningfully.
 
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Doddlebee said:
Yes, that is right. The purchase of stock and losses are probably of benefit to us, but the question if it there's more than that.
Click to expand...
If your daughter's turnover is go8ng to be sub the VAT threshold, at least at first, she wouldn't want to be forced into adding VAT onto her prices.

Generally though, I don't think it's a great idea to mix these two businesses.
 
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