After some consideration and advice from this forum, I have decided to sell my sole proprietor electrical business to my CC. One of the reason I have decided that it is a good time is because I have finally reach a point that I don't have outstanding debits and I believe it would be the best time.
I have been busy all day today moving everything across. I will have to send a couple of hours with my accountant getting advice on how to go about this merge, I think there is a lot more to just taking one company and moving it into another.
I have decided that after 22 years it is time to start running my business as a businessman not an electrician, by doing this I am hoping it will motivate me to get up and go again, I have found that my business pays the bills and entertains my hobbies so I have just got into a rut and just go with the flow. Just the decision to make the move has already got me motived and I have been busy today making the move, team talk with the staff, who are excited because changing from a sole prop to a cc they have the opportunity of becoming more involved and even look into buying in a members.
One of the big changes will be my salary, until recently I have never drawn a salary, just funded everything via the business, but that is all going to change, I will be drawing a salary and registering myself as a manager. I will also be removing most of my tools and equipment from the van and start focussing more on business management than electrical work. We will also be looking at using more sub contractors which I will be able to monitor instead of always be the one up the ladder facing the DB or job at hand, now I will step back and watch and make decisions.
I have decided not to register the cc for vat,
I will keep the vat registration bank accounts etc for the sole prop and use it for what use to be my hobbies and now will become a business entity, the reason I have decided to do this is because the hobbies are very little labour and lots of materials and consumables which I have to pay vat on, so the ratio will be 90 % vat deductible and only 10 % not, where as before it was 70 % labour, petrol and non vat deductible items and only about 30 % vat deductible, which was also part of the deciding factor.
The only issue is going to be the bigger customers who want my business to be vat registered so that they can claim the vat, which I am not too concerned about because of my next strategic move, neighbourhood watch and community policing forums, I will share my intentions once I have implemented my idea and been to a few community meetings to see if I can pull it off, with crime only getting worse and people worrying about contractors working in their house it is time to take advantage like all the security companies etc are doing.
Anyone have any ideas or comments or feel I am jumping into a cactus tree please feel free to comment.
While discussing the changes with one of the wholesalers today, he advised me that CC will be done away with in the near future, any advice on this?
I am also considering getting more involved in the electrical industry as a whole, I might even join the ECA again and get more involved instead of always just sitting in front of my computer complaining.