I am wondering at what level of profits do you tell your clients to consider incorporating?
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I tend to say profit £30k+
I tend to say profit £30k+ and expecting to be in business at least 2 years.
Sure, there are still tax savings from a lower profit level, even after accounting for increased accountancy fees...but it's a lot more of an admin burden, especially if the business closes shortly after.
I'd say, it depends on many things...
risk factor of trade (Ltd liability can literally be priceless)
Travel expenses & car choice
IR35 exposure (oops own goal)
National insurance payer or pensioner
Other income levels/need to draw on company profits.
Business premises
Extra fees, hassle & restrictions that comes with a company
s455 issues
existence of goodwill and commencment date of business
pension arrangments
expected life of the business/possible sale
succession planning
Beware the tax tail wagging the commercial dog!