Can I run a website without registering as a Ltd. company?

[lionfly]

Hi there,

I believe this maybe asked before but cannot find previous relevant posts. If somebody can direct me to the answer, please do.

I want to run a website with my own domain name, using usual hosting service. What I am not sure is whether I have to register as a company to do so?

During the buying process of a domain name and hosting, and building website content (e.g. forum module, CMS), do I have to buy on behalf of a company, or can go through the process as a person?

The reason I ask is because I know that having a company registered will cost at least £1k/year even no trading (e.g. the accounting and reporting fees etc.), but don't know how the website can go yet. So I want to run the website as a person first, and if it can get income (either from banners or other ways) and many users registered, then I consider to register as a company to continue.

Please help with your experiences. Many thanks,

Gary

 

[AdamJ]

No, you can do it as an individual or as a company. No problems either way. Nothing to stop you doing both (indeed as I do )

 

[DeanCo]

You do not have to form a limited company to start a new website, you can trade as a sole trader which is the simpler option. See here: setting up a new business. You just need to register with HMRC for self employment and file an annual tax return to do this. You can always form a limited company at a later date if it proves to be beneficial to do so.

 

[Faevilangel]

Course you can but you should be registered as self employed incase you make any money from the website, which then you can declare to the tax man.

 

[Paul Kelly ICHYB]

No you do not need to be a limited company.

"The reason I ask is because I know that having a company registered will cost at least £1k/year even no trading" - where did you get that figure from? Someone is feeding you some mis-infomation!

 

[MyAccountantOnline]

I want to run a website with my own domain name, using usual hosting service. What I am not sure is whether I have to register as a company to do so?

Hi Gary - no you dont have to register and trade via a limited company.

You need to get some professional advice on which is the best option for you based on your personal circumstances.

A company can, for some people, be a good way to save tax but not all.

An accountant can advise you on this.

I know that having a company registered will cost at least £1k/year even no trading (e.g. the accounting and reporting fees etc.),

It neednt cost that much at all - that sounds like a very expensive accountant. You'll find many accountants my firm included which charge much less than that.

 

[lionfly]

Thanks to you all for the information.

So I will need to declare either as sole trader or Ltd. company, which I prefer the ltd. if I have to register anyway, because it may involve employing in the future. What I wondered before was whether i can run the website for a while (before paying accountants) without registering at all, which now is a NO then.

Because I am working (employed) now, so I don't want to affect the current job.

If I register in my wife's name, who is not working for the moment, how does this affect her job seeking in the future? Can she just take any job to be employed, along being a Director in the company which may not profit, or she has to tell the potential employer that she is Director (does being Director mean self-employed?) and sign different contract, like company-to-company?

I hope I can fully run the website after the current contract finishes.

 

[KaiNo]

Hello Lionfly,

Unless you intend to make some sort of income from the site, whether that's through ads or trading, then you do not need to register as a company or soletrader.

If however, you later intend to make money from the site, you would need to register as a company or sole trader, for tax purposes.

If your wife is self employed, she can still apply for jobs in most cases, providing the employer does not have an issue with it. She would need to declare income from both the website and the job she is in. Of course, the employer would have to be aware of her being self employed.

Regards

 

[lionfly]

Thanks all. I hope to be able to run the website as the future income source, and grow it to become a life career, but want to cut down any unnecessary cost before it gets to the point somebody wants to put banners on my website, i.e. when it attracts funding.

So I wonder whether I can do it all personally without registering anything, BEFORE any income comes. Otherwise, the cost of running a non-profitable company is on top of the cost of developing the website.

 

[lionfly]

an additional note about the cost of £1k/year, which attracts questions above:

it is calculated from:
1. the company house and accountant fee (probably the cheapest 600+/year),

2. company address service (100+ for only government letters, 200+ for full mail forwarding. Using home address involves home/office confusion/dispute and I heard about it needs different insurance as well, and not possible for people who is renting),

3. how much for trademark/year? (though it is not a must, but can you afford not to?)

4. what else...

 

[MyAccountantOnline]

an additional note about the cost of £1k/year, which attracts questions above:

it is calculated from:
1. the company house and accountant fee (probably the cheapest 600+/year),

2. company address service (100+ for only government letters, 200+ for full mail forwarding. Using home address involves home/office confusion/dispute and I heard about it needs different insurance as well, and not possible for people who is renting),

3. how much for trademark/year? (though it is not a must, but can you afford not to?)

4. what else...

I'd check out other options for mail forwarding it does sound very expensive - what about a PO box and is it out of the question to use your home address? I have seen many tenants gain landlords permission to use their home address.

 

[karldavison]

Hi,

based on your posts so far, I would start self employed, then take a view dependent upon how the site does as to what the best option would be ..... prob ltd co afterwards

 

[OxfordWebConsultants]

yes you can. you are a sole trader, and can still setup business process and banking as a foundation. ask your bank about it

natwest offer some great advise on this

 

[lionfly]

just found the trademark fee: 600+ for 1 class (protection for 10 years, I guess) Ref: http://www.uktrademarkregistration.com/trademark6.html

another price: 325 for 1 class: http://trademarkit.co.uk/trademarkcosts.aspx

 

[KateCB]

Trademarking - depends on who you use as your trademark agent - you have to get the trademark APPROVED and ACCEPTED, it is not a case of just paying to register it. The specialist solicitors who does this work want paying for putting the case, doing the due diligence, the searches etc, so the tradmakr itself IF it is approved may cost £600 for 10 years, but the fees for the work prior to that could be £1000.

My tradmarks cost me roughtly £2000 EACH including all work, acceptance and 10 year term, and I have 3 of them.

You need to do a lot more research into business, running a business, the legal requirements including VAT/Tax/Self Employemnt, Directorships etc , as you appear to be very new at this, and it could cost you a lot of money if you get it wrong

 

[lionfly]

Thanks KateCB, really?! 2000 for 1 trademark!

From the text on their website, which seems including getting it "approved, accepted".

Yes you are right I need to do more deep research into the whole thing.

 

[sansam]

No, you can do it as an individual or as a company. No problems either way. Nothing to stop you doing both (indeed as I do )

thanks for the info...

 

[ibeliveicanfly123]

want to have a look at your site, may i ?

 

[VeryMark]

If you email me the details, Gary, I can give you a detailed quotation for trade mark registration and offer you a discount .......... £2000 strikes me as very expensive.

Our website has a lot of free information and we are more cost effective than most of our competitors.

 

[Raw Rob]

So I wonder whether I can do it all personally without registering anything, BEFORE any income comes.

As far as I am aware, yes, you can run a website without either being a LTD or sole trader, as long as you are not receiving any income from the website.

Rob