beemerboy

I'm gonna be redundant at the end of the month, and i want to start out on my own.

fed up with commuting on the misery line, and have enough work (just) to keep a roof over me, wifey and nipperooni.
so dont need £200 a month to go to British Rail anymore.

do i go to a bank and get one of those small business packs??
or just trade as myself???

any advice gratefully received!!!

i dont need a loan or anything, just want to be legal etc...

;-)BB

PS when i make my first million, i'll buy you all a drink!!!!

PPS if anyone is in the "freelance" IT support/web design / server hosting type business (in or near essex) drop me a mail, as i may well need to call upon these services from time to time

BB

sorry Mods - can you move to non-scooby related ....oops


[Edited by beemerboy - 10/16/2002 12:39:44 PM]

melon

BB
Quickest and cheapest way is to buy a "ready" made limited company which is one that has been set up and registered etc, all you do is pays your money (£65+vat when I got mine) and next day you get all the paperwork to sign as they resign out and you take over and most importantly you get the certificate of incorporation which you will need to open your business account at the bank. All dead easy and uncomplicated then your'e away....
cheers...melon

Phil

NO real reason for a new business to be set up with Limited liability.

Banks will always in start up situations insist on Personal Guarantee's anyway

Try seeing a new business adviser at a bank

Sqwint[Mark] on this board has I believe just taken on a post at Southends NATWEST try contacting him

Phil

Dream Weaver

Beemer - no need to set up as Ltd as Phil says. All depends what line of business you are in. Set yourself up as a Sole Trader, by ringing the Inland Revenue. You actually have three months from when you start in which to do this.

Visit your local bank, and ask them to open a business account for you, job done

If you need any IT services, feel free to email me for advice.

melon

I never got asked for any personal guarantee I'm with Barclays and they're fine as long as you put up with the monthly 'maintenance' fees
cheers...melon

ice man

If you need any IT services BB drop me a mail mate, sure we can assist you with whatever you need

[Edited by ice man - 10/16/2002 12:58:33 PM]

ProperCharlie

Depends how you want to structure the company. Going limited has advantages, especially if more than 1 person is going to have input, but for a small business being sle trader generally has more tax advantages. being limited offers you more protection from trade creditors (not banks) if you do happen to go bust.

Charlie.

Broadmoor

Choose the name carefully... IR35!!! ;-)

melon

Broadmoor.....don't even utter that word!! LOL

apn70

It's my understanding if you have a limited company, you can pay up to £10000 in dividends which are deemed to have tax paid upon them...so you dont have to

You can then pay anything over that to yourself as a salary avoiding £10k worth of tax...but check with an accountant first!

carl

Sorry Broadmoor, it's already gone

IR35 LIMITED
MAYFLOWER HOUSE
HIGH STREET
BILLERICAY
ESSEX CM12 9FT
Status :Active




[Edited by carl - 10/16/2002 1:10:44 PM]

ScoobydoobyDave

I set up my limited company myself for £20

Drop me a mail if you want to know how to do it!

Dave.

dave@dw-design.info

carl

apn70 -- I think you have nearly all of that ****-about-face, apart from the fact you can pay the shareholders dividends. If you are a basic rate taxpayer you will pay 10% on income from share dividends; if you're on the higher rate you pay 32.5%. The dividends can only come from profits, and profits incur corporation tax. There's no limit on the amount that can be paid out as a dividend, so where the 10k comes from I don't know.

[Edited by carl - 10/16/2002 1:13:31 PM]

beemerboy

dave there is a typo on the first line of your site
...in the about us section....

not a good advert mate...

BB

may need some web stuff soon, so i'll save your email mate.

cheers...

ian/555

I think that the first £10k of company profits is not liable for corperation tax and any profit you leave in for 2 years you can then take tax free.
Also not forgetting that as a company Director that any pension contributions you make will be credited at the higher rate of 40% even if you only take a salary that is charged at the 23% rate of tax.
Best thing to do would be to speak to an accountant first, as they will advise you as to which trading method is the best for your circumstances and most of these offer a free initinial consultation for people first starting up.

hth ian

carl

That's not my understanding. Although for 2002/3 companies making profits of <=£10k are not liable for corp tax, AIUI the marginal rate on the next bit means that when you get to the next corporation tax level you're effectively paying x% on all of it.

I agree: speak to an accountant.

Diablo

Don't mean to sound negative, but :-

Sole trader + failure (can) = Personal Bankruptcy

Ltd Liability company + Failure (can) = Liquidation.

ie, you get to keep your house, etc if Ltd liability.

Banks will only ask for personal guarantee if you want to borrow money from them by way of a loan or overdraft facility. They may not.

Tax differences are income tax for sole trader - v - corporation tax for ltd company, also PAYE implications if you pay yourself that way, but not always necessary to be paye employee.

I've worked in the field of corporate recovery/liquidations and bankruptcies for over 12 years.

I would't be a sole trader if I was selling newspapers from a street stand Too much risk these days.

D

PS -Also speak to one of the many enterprise schemes currently available. Also get the name of a good accountant/business advisor and speak to him or her. Then, and only then, speak to a bank.

It never ceases to amaze me how many people rely on banks for advice. For one, its not impartial. Don't forget Banks are commercial organisations and you are speaking to someone with a vested interest in securing your business who is anything but independant.

beemerboy

Diablo,
Many thanks mate.

I will try and get some help from a local business to business initiative.
there are a few about.

maybe that would give me a more impartial view.

thanks to everyone here for their input, grateful, i'm sure!!!

;-)BB