Registering as a company

[rss11]

Hi everyone, I was hoping to get some advice.

I started a small online store a while ago as a side project whilst im at uni. I currently sell less than 10 items a week as I havent worked on it (low bvalue items)

I now have some spare time to expand and market the site but when approaching new suppliers they are asking for the following;

VAT certificate
certificate of incorporation
letter of introduction

Now as i'm only turning over a tiny amount I dont meet the VAT threshold but I was wandering whether I'd be best to register for VAT anyway.

Also should I register as a limited company or as a sole trader? I'm completely new to all this and dont want to break any rules and regs. Any advice you can give would be a great help.

Thankyou

[SEE]

I can't see why you would want to register for VAT if you are not planning on attaining the £68k turnover threshold? it will give you more grief in admin and cost you.

I also think that if this is a small business, starting out the self employed route may be best at least so far on in the tax year where you may make a loss initially. You can always have a ltd company buy the business off you later and become a director then?

[rss11]

the problem with being a sole trader is will suppliers take me seriously when I approach them? With what I've been asked for, I feel as though I'm giving excuses by not having the relevant documents.

[JamesCartwright]

If you are considering becoming a limited company you need to make sure you know about all of your responsibilites as a director and your annual filing responsibilities.
These may help:
Sole Trader Vs. Limited Company (http://www.squidoo.com/sole-trader-vs-limited-company)
Duties of a Director (http://www.wisteriaformations.co.uk/articles/index.php/limited-company-formations-what-are-the-legal-duties-of-a-director/)

[MyAccountantOnline]

Hi everyone, I was hoping to get some advice.

I started a small online store a while ago as a side project whilst im at uni. I currently sell less than 10 items a week as I havent worked on it (low bvalue items)

I now have some spare time to expand and market the site but when approaching new suppliers they are asking for the following;

VAT certificate
certificate of incorporation
letter of introduction

Now as i'm only turning over a tiny amount I dont meet the VAT threshold but I was wandering whether I'd be best to register for VAT anyway.

Also should I register as a limited company or as a sole trader? I'm completely new to all this and dont want to break any rules and regs. Any advice you can give would be a great help.

Thankyou

Hi - no you dont have to be VAT registered if your turnover is less than the VAT threshold (£68,000) and you dont have to operate via a limited company. I would simply explain to your suppliers that you arent VAT registered and are a soletrader.

All the very best with the new business:)