advice needed : sole trader or ltd?

[winniethepooh]

Hi,
I'm a carpenter (self employed) and my wife is in full time employment as PA.
we are thinking of starting online dating business (online dating websites) from home.
Can I register a dating business and run it as sole trader (and continue to work as a carpenter) ,or we gonna have to start LTD ?

thanx

 

[zigojacko]

You can start it up as a sole trader in just your name. You just need to contact HMRC and it won't cost you anything. You can always make it a limited company at a later stage which will cost.

The online dating industry is incredibly competitive, some of the biggest dating sites are paying out hundreds of thousands on marketing and advertising every year.

 

[winniethepooh]

You can start it up as a sole trader in just your name. You just need to contact HMRC and it won't cost you anything. You can always make it a limited company at a later stage which will cost.

The online dating industry is incredibly competitive, some of the biggest dating sites are paying out hundreds of thousands on marketing and advertising every year.

thank you

does it mean I'll pay class 2 and class 4 NI contributions?

 

[zigojacko]

Your welcome.

If you are registering as a sole trader then I will presume this will be in your name therefore I will advise as per that situation irregardless of your wife's employment.

If you earn less than £5,075 (after adding up all earnings from all businesses you are self employed in), you can apply for a certificate of small earnings exception and not pay Class 2 NI contributions. You pay 8 per cent on annual profits between £5,715 and £43,875 (2009-10) and 1 per cent on any profit over that amount.

You work out your Class 4 NI contributions on your tax return and pay them alongside your Income Tax. Class 4 NI contributions don't count towards benefit entitlements.

 

[winniethepooh]

thank you so much for your help!

Will I be able to register a business name as a sole trader then? I don't really want to use my real name...

 

[zigojacko]

No problem at all, yes you will be able to register your business as a name of your choice providing the business name is available and someone else has not formed/trading under the same name...

You can check the availability of a business name here:- http://www.ukincorp.co.uk/company_formation_name_check/

 

[Eagle]

You don't really 'register' a business name as such.

 

[RBS]

You don't really 'register' a business name as such.

So, it means that as sole trader business is called "trading as Name Surname" and I cannot make up my own business name?

 

[zigojacko]

If you are going to trade under a name different to your own personal name you must display the name/s of the owners and an address where documents can be served on all business stationery and at your premises. Design letterheads, business cards and signage accordingly.

Use the right name:
A business name means the name of your business if it is different to your your own name.
It is not compulsory to register a business name but you can do so with the National Business Register.
You also need to be careful about choosing a name since the wrong name can get you into difficulties.
Certain words and expressions like international, federation and registered are restricted under the Business Names Act 1985 and the Company and Business Names Regulations 1995. Companies House and the National Business Register have lists of these words and details of how to obtain approval to use them.
Your business name can not be the same or too similar to that of another business, trademark or company. If it does conflict you could face legal action from its owner. Check phone books, trade journals and magazines to ensure against clashes and you can run free name checks against all these via the National Business Register as well as the Trade Marks Register and the Patent Office and the limited companies names index at Companies House.
To be absolutely sure that you can use a name, contact a solicitor to perform the checks or register your name with the National Business Register who will do the checks for you and ensure nobody copies it the future or passes it off as their own.