I have been using my personal account for these transactions and the bank closed (I'm permitted to open a new one with the same bank) the account for the reason of it was being used as a business account. If I tell them first and they charge me accordingly do you think that I'd be able to continue with these transactions?Yes, you can become a sole trader at any age.
I presume you can open a bank account, but so what if you can't?
User your normal bank account and keep good records so you can separate your business from your personal transactions.
Alternatively, open a separate personal bank account and use it only for your business transactions.
Brendan
A Limited company is more suited for the business I want to start/have started. If I can set up an LTD owning 100% of shares and have family members be the director and secretary that's perfect. Provided I can take over tax/cost free.On reflection, agree with Tommy.
Forget about the hassles of a limited company.
Brendan
you have not shared the type of business, but I sincerely hope none of your customers has a problem that might require insurance cover, legal support, or end up before the courts - or create any problem that can’t be easily ‘sorted out’. Your brother and parents will not thank you. And you will also not be happy, as you risk being banned from acting as a company director.Have been running the business but need to move it to sole trader/Ltd. Worse case scenario, I use the Ltd that I set up in my brothers name and pay the 33% CGT on the company's worth when I turn 18.
Thanks
There is no reason why the company should be worth anything from a tax point of view. If you pay out profits as salary, the only asset will be goodwill, which realistically will not be worth much in a year's time.Have been running the business but need to move it to sole trader/Ltd. Worse case scenario, I use the Ltd that I set up in my brothers name and pay the 33% CGT on the company's worth when I turn 18.
Thanks
I have no intention of drawing any sort of salary for the next year or two as I'm fortunate enough to be a dependent and want to grow the business before using it to pay for living expenses. So anything I make + any money I put in will all have to be taxed.There is no reason why the company should be worth anything from a tax point of view. If you pay out profits as salary, the only asset will be goodwill, which realistically will not be worth much in a year's time.
I too applaud your entrepreneurial spirit.The business is purchasing second hand cars off of done deal and doing modifications to them (only cosmetic mods, nothing that would even need to be declared on insurance) and selling them on
I'm fully aware that I must pay taxes. My gripe is that when I turn 18 and want to put the shares into my name. I will have to pay 33% tax on those shares (I believe) which I do not want to do as this would be a substantial enough amount. (and it would be "my" business anyway)I applaud anyone's entrepreneurial spirit.
I assume you are selling the modified cars after modding them - if you do so as a business, the buyer of those cars has significant rights under consumer protection legislation. Until you are 18 (and of course thereafter), make sure you understand what that means.
And regarding taxes: if you are expecting to earn a living from it, you will pay taxes. This is unavoidable.
And talk to an accountant on what type of legal entity might be the right one for you.
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