RoShamBo

iTrader: (1)

I need to set up a company as cheaply as possible, so I get a VAT number & company number.
Whats the cheapest & easiest way of doing this ?

Any help appreciated.

Thanks

R.

TopBanana

Cheapest and easier are rarely the same, this is no exception.

Cheapest is getting the forms yourself from Companies House and Customs and Excise (or whatever they're called now).

Easiest is get your accountant to sort it all out.

RussBoy

Account should charge about £150 for this. You can get 'ready made' companies and company formation specialists out of the back of mags like Exchange and Mart for less than £75 but would deffo agree with using an accountant, particulary to register with Revenue and Customs for both VAT and to declare the business for PAYE (if applicable) etc.


R

OllyK

Odly enough I'm looking in to this as well, you may find the following useful:
http://www.businesslink.gov.uk/bdotg...cId=1073858805

OllyK

BTW - you don't "need" to register for VAT until your turnover exceeds £60K pa

RoShamBo

iTrader: (1)

Thanks guys. Olly - I didn't know this thanks for that.

R.

OllyK

It's from the link I posted - a couple of good PDFs there on the basics. Also things I hadn't realised about what you are supposed to do in terms of notifying the council if you work from home as you may have to pay business rates on the room rather than council tax. Also about needing to register as being self employed (even as a company director or a largely inactive company) and NI contributions to boot. There's quite a lot to it - I'm pondering if it's worth the hassle!

RoShamBo

iTrader: (1)

Oh great, thought it was a little simpler than that !

R.

OllyK

You and me both, you could of course ignore all that and hope you don't get caught!

RoShamBo

iTrader: (1)

mmmmmm now you are talking ! .....

David Lock

Of course you don't need to form a company to register for VAT. You also need to consider pros and cons of being a company or a self-employed trader. Never forget if your self-employed you risk everything you own if it goes **** up. Worth discussing with a decent accountant. dl

David Lock

It begins with a B and ends with an S. dl

WRBlue-STi7-Prodrive

I can help ya here.

There is a company called Kestrian that sorts everything out for you. They have a website somewhere that explains everything.

RoShamBo

iTrader: (1)

Thanks mate.

R.

RoShamBo

iTrader: (1)

Had a look, they look a good outfit.
One Q though, regarding sole trader or limited company.

This site explains it all v well http://www.bytestart.co.uk/content/19/index.shtml

But with sole trader, says that you need to inform government that you are now self employed.

I will be setting up the company & running it while still at my current full time job, so will not be going self employed (just yet)
So do I not inform them I am self employed and just set it up ?

R.

OllyK

It's covered on that site I liked to earlier in the thread. You can be employed AND self-employed at the same time. If you're running your own business you must be registered as self employed as well - and you'll start getting self assessment tax forms as well!

RoShamBo

iTrader: (1)

Cool ok.

Another question (sorry !)
I would rather not list my personal address as the company address, just want to keep it separate, which means I guess a PO Box address.
How do I go about getting one of these ? Anyone know ?

Cheers

R.

john_s

iTrader: (1)

If you go with a Ltd company, you will need a registered office address for the company. I might be wrong, but I don't think you can have a PO box for a registered office.

If you registered your company trhough an accountant, they may let you use their office as your registered office address. That's how it's set up with the company I work for.

John.

FATBOY_STi

If the Company is inactive - you can register it as such and avoid all the admin burder, and registering as self emplyed etc etc you just need to remeber to tell them all when you do start..

Paying business rates on the room - maybe yes, but you can also offset some of your day to day house expenses off against your business, ie: a percentage of light, heating, tea and coffee, a new hoover for keeping the office clean etc etc all "tax free income" for want of a better phrase...ie: paid from Company profits before tax

Also, don't know anyone that has been done for it, but certainly in some housing deeds it may say you cannot run a business from the property.!!Another little legal issue ......

David Lock

And you won't endear yourself with the neighbours with six orange vans parked outside with "SEPTIC TANKS R US" painted on the side

RoShamBo

iTrader: (1)

LOL
So with no PO number I can register my home address as the company HQ, as long as I check my deeds.
Its a pure internet based company so nothing physical will be done on site.

I just wanted to distance my home / house from the business, but unless there is a good reason not too I am tempted just to list my house as the company address ??

R.

David Lock

But on a serious point and just stating the obvious if you list your home as your office you will be telling the world and his wife that you have some decent equipment to nick and if you upset a customer then he/she knows exactly where to throw the brick through the window......

RussBoy

Couple of things about the address as I have run Internet based businesses from home for 6 years now (now based in Spain but with 2 UK companies).

Firstly, a P.O Box from the Post Office is about £104 I think and they'll deliver the post to your home, or slightly less and you collect from your local post office yourself. However, ANYBODY can legally ask the post office for the destination PO Box address and the PO are obliged to provide the info (though not a lot of people know that).

Also, if taking the Ltd company approach - your name as a director will be shown along with your home address at Companies house and records can easily be accessed online! Registered address is simple - use your accountants or some Company Formation businesses offer this as a service for about £50 a year.

Finally, in terms of PAYE - I own (i.e. am Managing Director and majority share holder) or 2 UK Ltd companies. I have to have UK based meetings and comply with UK legislation for filing accounts etc. but I am NOT an employee of the company - I take money from the business currently because I can claim back start up costs from previous years and claim dividends etc and a good accountant will assist you with claiming all sorts of business expenses legitimately - a lot easier in my opinion as a Ltd company than a sole trader.

Final point regards the future. If you decide to sell the business in years to come having turned it into a great success, it'll be a lot easier and more tangible to sell a Ltd company than a concept by an individual (which could be copied anyway).

Hope this helps a bit. In short, I'd always take the Ltd route - bit more paperwork but greater security, piece of mind and leaves you with tangible assets...

Cheers,


Russ

paulg1979

iTrader: (1)

I've been self employed since april and its the best thing I have ever done. I'm a sole trader as it is so easy to set up and look after. Being Ltd is alot more involving but has its advantages. If your company went **** up and you're in serious debt you can just walk away from you debts but being a sole trader means you in big s*!t and owe alot of money. I would recommend an accountant though. They sort all your business out for around £400 - £500 a year.