General > Jobs
Setting up as a "Limited company" Electronics engineer
Faringdon:
Hi,
Do you know of any good ways to set up as a "Limited company" so that a company can pay me as a "supplier"?
Details of any costs etc much appreciated?[
I always had others do it for me in the past.
Now an actual company wants me to get a "Limited company" set up.
So they can pay me for PCBs delivered.
Ie, pay me based on "fixed cost vs fixed deliverable"
amiq:
WTF? Unless you want to trade as a limited company (see an accountant to see if it's in your best interests) tell them to piss off. If they're only able to make payments to limited companies they are seriously fucked up.
tggzzz:
The OP has a reputation for asking, um, strange questions - and not revealing all pertinent information in his posts.
Previously https://www.eevblog.com/forum/work-wanted/how-to-start-company-in-switch-mode-power-supply-design/msg5212668/#msg5212668
Today he asked whether to use a water repellent to make keyboards less clacky https://www.eevblog.com/forum/repair/repair-laptop-keys-with-wd40-lubricant/msg5343713/#msg5343713
Yesterday he asked https://www.eevblog.com/forum/renewable-energy/making-a-50hz-power-sine-source/msg5340065/#msg5340065 Bear in mind he is a (self-professed) power supply professional who makes their living from that kind of thing.
Previously he entertained everybody with https://www.eevblog.com/forum/chat/a-new-type-of-electronics-degree-course/msg5250390/#msg5250390
Previously he bored everybody with https://www.eevblog.com/forum/chat/keeping-hold-of-electronics-engineers/msg5042023/#msg5042023
jpanhalt:
--- Quote from: Faringdon on February 19, 2024, 05:04:42 pm ---Now an actual company wants me to get a "Limited company" set up.
So they can pay me for PCBs delivered.
Ie, pay me based on "fixed cost vs fixed deliverable"
--- End quote ---
I can't respond to the first part, as that depends on British law. In the US, an LLC takes about 8 charged-hours with an attorney and $1,400 for mine. A second one would cost less. You can do a DBA yourself (i.e., doing business as fictitious name). It's almost free. One could do an LLC a lot cheaper using corporate templates, but in the US, it is state regulated and some states are very touchy about allowing individuals to practice law without a license. The downside in those states (besides set-up cost) is that any matter involving the LLC -- even a single-partner one -- must be handled by a licensed attorney.
On the second matter, I have come across companies that require a corporate name, including LLC, to sell something to me as that creates a shield from our tort lawyers. It's hard to imagine the reasons for requiring a corporate entity to buy from, unless it has something to do with your sales/VAT taxes. In the US, typically the seller collects sales taxes from the buyer, but the buyer is still responsible for paying them if the seller keeps the money. If you fail to perform, it is easier to sue an individual, and your LLC/corporation may have zero equity from which they could get an award. As an individual, your entire personal worth, immense as it may be, could be attached.
EDIT: There is also the difference between an employee and independent contractor. Maybe the company doesn't want the headache of having you as an employee. UPS got into trouble for designating its delivery people as independent contractors, when it was pretty obvious they were employees. In your case, it seems pretty clear you would/could qualify as an independent contractor.
mikeselectricstuff:
There is no need to be a ltd company - you can work as a sole trader, and it shouldn't make a difference to suppliers unless they have a stupid admin dept.
If you're dealing only with businesses and not consumers, it can be useful to be voluntarily VAT registered. as you will be able to claim back any VAT spent on equipment etc.
I'd say you're probably more likely to have issues with big companies if not VAT registered than not being a ltd. company
Navigation
[0] Message Index
[#] Next page
Go to full version