Amazon Sole - Ltd

[Tigris]

Hi guys,

I am about to order my first product for Amazon FBA.

I am going to start of as a sole trader to test the water as so to speak. The aim is to go Ltd in the near future once I see regular cashflow. One thing putting me of starting as a Ltd company as I know it is only £12 is the accounting fees each month.

Has anyone had experience of changing from a sole trader to Ltd on the Amazon seller central and is it as hard as some say to switch to Ltd?

Kind Regards,
Matt

 

[Mr D]

Takes sometimes months to switch from what I have seen on the amazon forums.
With account maybe suspended but still being charged whatever fees in the meantime.

No idea whether these days needing a new amazon account, ownership of the account as a sole trader is yours but ownership by a limited company is someone else.

 

[Tigris]

Takes sometimes months to switch from what I have seen on the amazon forums.
With account maybe suspended but still being charged whatever fees in the meantime.

No idea whether these days needing a new amazon account, ownership of the account as a sole trader is yours but ownership by a limited company is someone else.

Maybe I should bite the bullet and start as Ltd. Just I hear people saying the accountant is £600 a year and that doesn't cover regular book keeping. I will also need Xero software and link my books is whats recommended by other sellers.

 

[Mr D]

Maybe I should bite the bullet and start as Ltd. Just I hear people saying the accountant is £600 a year and that doesn't cover regular book keeping. I will also need Xero software and link my books is whats recommended by other sellers.

Any accountant doing the bookkeeping is going to charge you, probably considerably. Much easier to do the bookkeeping yourself to start with so you keep a close eye on income and expenditure.
There's free software and there's some that's not too expensive.

Xero is one option, there are others. VT Cashbook works too.

Sole trader you can do end of year accounts yourself. Limited company then accountant preferred - you can in theory do your own accounts but time may be better spent on the business rather than the admin.

 

[Tigris]

Any accountant doing the bookkeeping is going to charge you, probably considerably. Much easier to do the bookkeeping yourself to start with so you keep a close eye on income and expenditure.
There's free software and there's some that's not too expensive.

Xero is one option, there are others. VT Cashbook works too.

Sole trader you can do end of year accounts yourself. Limited company then accountant preferred - you can in theory do your own accounts but time may be better spent on the business rather than the admin.

Very true. Also talking to a few FBA sellers on a closed facebook group.

Now to workout a Ltd name. I know a lot of people don't have their Ltd name as the company name (that goes on products).

 

[Mr D]

Very true. Also talking to a few FBA sellers on a closed facebook group.

Now to workout a Ltd name. I know a lot of people don't have their Ltd name as the company name (that goes on products).

I think you mean limited name as trademark.

Limited name is the company name. Though you can trade as something different.
And trademark can be what you want and can get away with.

 

[Tigris]

I think you mean limited name as trademark.

Limited name is the company name. Though you can trade as something different.
And trademark can be what you want and can get away with.

Thank you, appreciate it

I should probably look into a propper business bank account if I go Ltd as well? I currently have a seperate personal debit account for now to keep funds seperate.

 

[Scalloway]

I should probably look into a propper business bank account if I go Ltd as well

Yes a bank account for the limited company is a must. Remember you and the limited company are separate legal personas. If you use a personal bank account for company transactions that is classed as you borrowing company money and there may be a tax charge.

 

[Tigris]

Yes a bank account for the limited company is a must. Remember you and the limited company are separate legal personas. If you use a personal bank account for company transactions that is classed as you borrowing company money and there may be a tax charge.

Reading HSBC seem to be good and offer free business acount for 12 months. TSB are similar as well

 

[Mr D]

Reading HSBC seem to be good and offer free business acount for 12 months. TSB are similar as well

Free business account for first 12 months appears standard. Look at what else they offer and what other fees are.

Or, as some do, use an account for 12 months free then look around see what is being offered by competitors then.

 

[Paul Kelly ICHYB]

What £12 accounting fee?

 

[Mr D]

What £12 accounting fee?

Don't think anyone mentioned £12 accounting fee.

 

[Paul Kelly ICHYB]

... as I know it is only £12 is the accounting fees each month.

 

[Mr D]

And the cost of a limited company to set up?
£12.

 

[Paul Kelly ICHYB]

Each month?

 

[Ecomccountant]

It costs £13 to setup your own limited company (which has been referred to above). I have a guide in my signature which could help.

I would recommend using Natwest - they provide you free agent or free which is a pretty good accounting solution. It will help when it comes to bookkeeping and reduce accountancy costs in the future.

 

[Mr D]

Each month?

Yes accountants can be done monthly. At whatever rate.

 

[Mr D]

You should have business license or be register for sales tex. You can sell without register trademark. Have designed your own product you should look into trademark registration.
Making an amazon seller account.in order get your FBA business up or running, going to need to make a amazon seller account. Go to amazon website scroll down the footer or look the heading mark. that's reads and condition. Sell on amazon account.

What is a business license?
Don't think I've ever had one and been in business over 2 decades with multiple businesses.
Sales tax is done when selling in America from within the states. Not done in the UK.

 

[Tigris]

Please Delete

 

[Mr D]

Costs don't affect your turnover. Higher costs will reduce your profits.

Ideally FBA should save you time and money. Compare the FBA costs to the cost you would have in packaging and posting. If the time saving is too small and the FBA cost greater than your own costs to do it then consider that item for FBM instead.
Unless doing 100% FBA.