Starting a business

Anyone here started their own business?

How do you go about starting your own business?

I am just wondering what you need to do to make the business official and obviously all the details with regards to what the tax man needs to steal.

Thanks for any replies

DD

yes...(if your going limited?)

decide on a name and make sure noone else is using it, this can be checked at www.companieshouse.co.uk

then u need to register that company, personally i used a company formation agent, can cost between £30 - £100, this way they register your name, register the director (s) and company secretary. provide memorandoms of association and your company formation certificate, well...all the legal stuff...including share certificates etc.

(it used to be that you had to have at least 1 company director and 1 company secratary (different people) to set up a company but the law has change now and you can set a company up yourself and have 1 director.)

you have to have a registered office, even if its not where you actually work from, and the company name has to be on show/visable at this address.

depending on the type of company you may need some form of insurance such as public liability insurance.

theres too many questions id need answering to be able to give a full view but thats most of the basics in actually setting up a ltd company..

you have to decide if your going to be vat registered, if your profits are over a certain amount then you HAVE to reister anyway but thats something else...

also if you will be employing people (including yourself as director) you need to set that up with the tax office too....

if i can be of help let me know

before you can trade and before your company becomes legit you have to register it with her majesty.

a lot of banks have their own in house assistance, not only for start up loans but for general small business advise. not that you'd necessarily trust a bank right now....

As above. Do it through a company, don't accept personal liability - but the bank will insist on a guarantee.

Whatever you are doing - prepare a robust business plan, the bank will insist on one if you want to borrow. Test it, test it, and then test it again to make sure it works. And have a contingency plan in case it all goes horridly wrong.

[embee]

depends what you're going to do.

If you're simply going to be a self-employed "sole trader" then it couldn't be easier, one page form to the HMRC to say what you'll be called and nature of the business and away you go. Obviously you need to consider the liability issues, public liability/professional indemnity etc and cover yourself, but that doesn't need to be ridiculously expensive, depends on the business. You can be employed and self-employed at the same time, HMRC need to know and will contact National Insurance. Tax return gets more complicated. I'm just self-employed, my tax return is very simple, no accountant needed.

As a sole trader you can call yourself your own name even if it's the same as another well known business, if you're called W.H.Smith then you can use it.

Lots of stuff to consider if you want to be a partnership or limited company, not least the accounts. Don't go that route unless you're comfortable that you understand it all.

Phone the HMRC and see if you can go in for a chat, best to get on their good side and they are a pretty helpful lot usually.

Cheers for the replies chaps.

I am looking at being a 'sole trader' according to the post above, it is more of a advisory business if that helps?

Dave,
One thing to consider even if it is an advisory service you are offering is to do it via a LTD company. So in the event of something going wrong the company is liable rather than you.

Now this is as I understand it, I may be wrong:

This way any liability is limited to your stake in the company. i.e. If you teach Mr N.Umpty a new trick with one of your toys. The next week he go out and manages to shoot himself in the scrotum whist showing off the trick to their mates down the pub.

N.Umpty could then sue Dangerous Dave LTD, rather than Dangerous Dave himself. i.e. The company is of limited value and that's the most he can get. Your assets (house, sv, horse, etc) should be safe as D.D LTD is a seperate legal entity.

The same goes for suppliers, should things go wrong and you can't pay the suppliers etc or something bad they become a creditor of the company rather than yourself.

Dan

Originally Posted by Sudoxe

Dave,
One thing to consider even if it is an advisory service you are offering is to do it via a LTD company. So in the event of something going wrong the company is liable rather than you.

Now this is as I understand it, I may be wrong:

This way any liability is limited to your stake in the company. i.e. If you teach Mr N.Umpty a new trick with one of your toys. The next week he go out and manages to shoot himself in the scrotum whist showing off the trick to their mates down the pub.

N.Umpty could then sue Dangerous Dave LTD, rather than Dangerous Dave himself. i.e. The company is of limited value and that's the most he can get. Your assets (house, sv, horse, etc) should be safe as D.D LTD is a seperate legal entity.

The same goes for suppliers, should things go wrong and you can't pay the suppliers etc or something bad they become a creditor of the company rather than yourself.

Dan

Surely that is what public liability insurance is for?

Originally Posted by Sudoxe

Dave,
One thing to consider even if it is an advisory service you are offering is to do it via a LTD company. So in the event of something going wrong the company is liable rather than you.

Now this is as I understand it, I may be wrong:

This way any liability is limited to your stake in the company. i.e. If you teach Mr N.Umpty a new trick with one of your toys. The next week he go out and manages to shoot himself in the scrotum whist showing off the trick to their mates down the pub.

N.Umpty could then sue Dangerous Dave LTD, rather than Dangerous Dave himself. i.e. The company is of limited value and that's the most he can get. Your assets (house, sv, horse, etc) should be safe as D.D LTD is a seperate legal entity.

The same goes for suppliers, should things go wrong and you can't pay the suppliers etc or something bad they become a creditor of the company rather than yourself.

Dan

Absolutely - unless you've given personal guarantees. It's more red tape but this red tape is worth it I think. As soon as you register a company you will get forms from the Inland revenue - including a P35 - don't bin it, it's a return of employees - you must return it to the IR even if it's a nil return as else it's a £100 fine for each month of default.

With regard to VAT you must do it if turnover exceeded £67,000 in the 12 months preceeding registration. You can opt to register on starting your company if you believe you will exceed the registration threshold.

More details are here:

http://www.hmrc.gov.uk/vat/reg-how-to.htm#2