As of midnight last night, a mere "business" has become a fully fledged "limited liability" company: The Toy Rental Club Private Limited.
It won't make any significant difference to our clients, but for us it has lots of implications. Yes, there are minor hassles with new invoices, receipts etc and we've already had to pay for the services of an accountant, but there are lots of good reasons for going the "pte ltd" route. Above all, the company itself (as opposed to ourselves as individuals) is now liable for legal claims, debts etc. Similarly, the company will pay tax on profits - separate from its owners - whereas previously we were personally responsible for such taxes. (We will still be liable for tax on any salary we receive, though the sad fact is that we haven't had any so far!)
There are other advantages in terms of attracting investors and we'll certainly need some of those if we are to achieve our goals for expansion.
Please note that from now on any cheques for the company will need to be made payable to: The Toy Rental Club Pte Ltd.
Tuesday, 1 July 2008
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