On a change of business legal structure from sole trader to limited company, it is not just a simple matter of forming a limited company with the same name as the sole trader business. The business and assets of the sole trader business need to be transferred to the new limited company by means of a Business Transfer Agreement.
Prior to the transfer of the business, many matters need to be dealt with, such as preparing an inventory of plant, equipment and stock; determining the transfer value of assets; arranging for the novation of contracts; as well as attending to many other matters.
The transfer of a business from sole trader to limited company status gives rise to tax implications as well as legal issues, and we work closely with our clients’ accountants to ensure a smooth transition from one trading medium to another. If necessary, we can arrange a free consultation with an accountant specialising in business transfers.
We work on the basis of fixed fees which we agree in advance.
These notes are intended for general guidance only and individual advice should be sought as appropriate.
For further information, or to arrange an appointment for a free consultation, please contact us.