two business startups, how should i register? Help please

[runnersp]

Hello all,

Been following this forum for a while now and have finally decided what i i'd like to do and this has lead to my first post. Hopefully someone out there could offer some friendly advice.

I'm planning on starting 2 businesses at the same time (sounds crazy i know). 1st - business will be a van and man hire service (in the process of setting up website handyvanman. co. uk)
2nd - business will be selling goods online via a website.

1st - I've just called up about insurances (GIT and public liability) for the van and man business and it seems quite reasonable.

Right down to my question: which would be the best way to register myself as employed? I am clueless when it comes to this. Never had my own business.

Can i form a company, registering with companies house and Trade As 1st and 2nd business, etc (i'd also like to have a IT business specifically supporting home users) Or should i start as self-employed and run each business separately? I don't think I'll need to be registering for VAT just yet. I would like to have a separate business bank account.

Hopefully i'm making sense here.

Stu

[dp0848]

Hi Stu,

You've got three choices.

1) Self employment. See here (http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm) for details of how to do this.

2) Form a limited company and then operate two business via it so for example ABC Ltd trading as Business 1 and ABC Ltd trading as Business 2.

3) Form two limited companies, one for each business.

I'd not recommend the third approach for tax and cost reasons. The choice of whether to be a sole trader or a limited company take some thinking about. There is a sticky at the top of the Accounting section of this forum that deals with the issue surrounding the choice. Have a quick read of it. Then, before you decide, take professional advice from a qualified accountant. THe wrong choice at this juncture could cost you dearly later on (far more than the accountants fees for an hour of his time).

Regards.

David.

[alex4orne]

Hi
Please check your insurance as you will need to be covered for hire and reward on your van as well and this can cost you at least £1500. This is separate to your GIT and PL insurance.
If you don't have and get stopped by vosa you could loose your van.

[dp0848]

If you don't have and get stopped by vosa you could loose your van.

Or by plod. And they are allowed to crush the van if its not insured. :eek:

[runnersp]

Hi and thank you both for replies. I think i will go for option 2 and form a limited company. A lot more reading is required... i think i found the link u suggested.

I knew i'd need to change my current van insurance but didn't think it would be that much! I'll have a phone around as i want to do it all properly and take no "crushing" risks!

[MyAccountantOnline]

Hi and thank you both for replies. I think i will go for option 2 and form a limited company. A lot more reading is required... i think i found the link u suggested.

I knew i'd need to change my current van insurance but didn't think it would be that much! I'll have a phone around as i want to do it all properly and take no "crushing" risks!

Is the additional cost of running two companies really the right option for you as a start-up?

Dont forget things like the ability to offset first year losses as a soletrader which isnt availiable as a company.

Also do bear in mind the additional admin costs and associated fees of running two companies compared to a sole trade.

I'm not trying to put you off but merely suggesting you should, preferably with an accountants support, consider the options very carefully.

This may help -

http://www.hjcca.co.uk/resources/business_zone/business_helpsheets/helpsheet.php?hsType=9&hsId=37

Good luck with the new businesses!

[runnersp]

Thanks Nicola for the info. I was interested in the money saving aspects you mentioned. However, from calling a few of the distributors (of the products i plan to sell). They have all requested company letter head OR bill in the company name. Some have said i need to be a registered company. Still don't think i need to be VAT registered just yet.

My question is, how much does it cost to form a limited company with an account (seen on google £30??). I would rather go through an account who could help me form the company and offer on going advice (exspecially for the 1st yr). Is it possible to estimate what i can expect to pay in total for the first year including accounting fees. I'd like an idea so i know i'm not getting ripped off and can afford it.

Thanks so much
Stu

[MyAccountantOnline]

Hi Stu

Can you give me an email address to contact you personally?

I will be glad to discuss this with you and give you some fee quotes.