How to close a limited company top ways to make easy money strike off or liquidation – liquidation vs dissolution

Applying to have a company struck off the register and top ways to make easy money dissolving it is a very different approach to winding up top ways to make easy money a company and liquidating. One is informal, has very little administration attached to it, can be done by a company director and costs about top ways to make easy money £10. This procedure is known as striking a company off the top ways to make easy money register and dissolving it (company dissolution). The other has much more formal administration involved, must be carried out by a licensed insolvency practitioner and top ways to make easy money costs can begin anywhere from in the region of £2,850 plus VAT, up to several thousand pounds, depending on the complexity of the case. So why would a company director, who needs to close a business, choose liquidation over dissolution? Or perhaps, have to liquidate the company rather than dissolve it? And what are the costs and benefits of choosing liquidation top ways to make easy money vs dissolution? Key facts: striking off V winding up a company

In order to have a company struck off the register, all, or a majority of the company’s directors must file a DS01 form with companies house top ways to make easy money . As mentioned above, this has a £10 administration fee attached to it. Nevertheless, there are several conditions that must be met for the top ways to make easy money dissolution to be successful. Our article, ‘ company dissolution: how to do it’ outlines this fully. However, in brief:

It’s very common for the last three points to be top ways to make easy money most relevant to companies that have outstanding debts. For most directors considering whether to strike a company off top ways to make easy money the register or wind it up, the reality of whether or not the company has outstanding top ways to make easy money debts (or indeed assets that need distributing) will be the most important concern in the decision making top ways to make easy money process. Dissolution vs liquidation of a company with debts: winding up and liquidating

As we mentioned above, winding up and liquidating a company is a formal procedure top ways to make easy money that needs to be carried out by a licensed insolvency top ways to make easy money practitioner. This is true for solvent liquidations when there are assets top ways to make easy money to be distributed (called members voluntary liquidation – find more details here ) and insolvent liquidations, where there are debts that need to be dealt with top ways to make easy money (creditors voluntary liquidation). Liquidation is a considerably more costly process. However, there are also substantial financial benefits to opting for liquidation top ways to make easy money over dissolution. Liquidation vs dissolution: dealing with debt

The first financial benefit obviously relates to debt. A CVL is the formal insolvency process to deal with top ways to make easy money the outstanding debts of a company that is not viable top ways to make easy money moving forward and needs to close. As we mentioned above, liquidation can cost anywhere from £2,850 (plus VAT) to several thousand pounds. The price will vary according to the number of creditors top ways to make easy money that the business is owing money to, and whether the business has assets that need to be top ways to make easy money liquidated. If so, the number of assets that need to be liquidated. (feel free to try our free online cost calculator here top ways to make easy money if you would like to see how much it might top ways to make easy money cost to liquidate your business).

On the other hand, if you successfully dissolve the company whilst there is outstanding top ways to make easy money debt, it’s possible that the company can be resurrected by its top ways to make easy money creditors due to the outstanding debts. If this occurs, the debts can then be held against you personally, as director. Liquidation vs dissolution: when you can’t dissolve the company or get it struck off the top ways to make easy money register

If a company owes money – to HMRC, for example – HMRC can, and it is likely that it will, block the application to strike the company off the register top ways to make easy money until the debts are dealt with. When companies house receives the application to strike the company top ways to make easy money off the register, it will advertise the application in the london gazette. At this point, any of the company’s creditors can block the application and prevent the company top ways to make easy money being struck off. If this occurs, the directors will be forced to liquidate the company to top ways to make easy money close it. There are other options which can help reduce the costs top ways to make easy money of liquidation as detailed here . Strike off vs liquidation: what other costs are there?

The only other cost of liquidation vs dissolution will be top ways to make easy money time costs. There is undoubtedly more administration involved in liquidation vs dissolution. However, due to recent changes in insolvency practice, this is much less onerous than it ever was. Given the potential benefits involved, it’s not particularly time-consuming. We outline the process and the timescales in more detail top ways to make easy money here .

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