Business advice

[kkthxbye]

Hi there, I'm James, new to the forums. Just hoping someone could give me a little bit of guidance.

I'm 20 years old and I'm trying to set up my own freelance web design business.

I'm yet to register the company name, but this is where my main question lies.

It's going to be a one man company, which operates from home and has very little overheads. I'm wondering what type of business structure would be right for my situation and how would I go about registering it?

Another question is about a banking account. I took a visit to Halifax today and asked a few questions, what he said pretty much went straight over my head. Just wondering if anyone who is/has been in my situation could give some advice on what I am going to need to do.


Thanks very much, looks like an excellent forum!
James

 

[MK Financial Solutions]

Depending on what you expect to earn during your 1st year, it might be advisable to start as a sole trader. Sole trader is cheaper in accountant costs etc and as and when your business takes off you can switch to a ltd company for tax benefits.
I would register a ltd company with the business name (but not use it to start with). The reason for registering in the beginning is, just in case someone else registers the same name as you (same way you would register a website name). When HMRC write to you, you tell them that the company is not doing any business etc. You can form a ltd company on the internet, there are companies who would register a limited company for you for £30 upwards.
There are loads of different accounts, I have found Alliance and Leicester (free for 2 years) and Abbey (free for life) very useful.

I am sure other people on here will have much more precise advice for you.
Good luck with your venture.

 

[TestAPlug]

Hi there, in a similar situation myself, I am 25 and a sole trader and have banked with a few different business banks. For a new account I would advise getting intouch with Aliance and leicester as they are free for a year! I do business advertising and stationary, bouncy castle rental, fruit machine rental and repair, emergency lighting tests and PAT testing and also dabble in web design (mostly dreamweaver - I cheat!). I have had no problems dealing with large organisations, they like sole traders, I would advise though that you get VAT registered as I did as large companies wont touch you unless you are, also ISO 90001 is a good start to standards. Good luck KEV testaplug

 

[Sharm]

Hi Nat west is also a good bank for start ups as they will allocate a manager to you who can help you set things up. Pop into any branch and ask to speak to their small business adviser.

I would start sole trader and consider Ltd route once your business takes off, as the previous writers have suggested.

Negotiate fees free for 12 months with any bank you choose, they all want the business at present.

Good luck

 

[DavidT]

Just so you are aware - we are now providing an online Company Formations Service which starts at £25 (less for our Service/Business Members).

Not entirely sure you need to register one now though - partly depends on the name you want and if it warrants any protection, but you could otherwise use a trading name (although maybe not as ideal).

David Toohey
The Accountants Circle
Accountancy & Bookkeeping Forums | Accountant & Bookkeeper Blogs | Company Formations from £21!

 

[office man]

PM me with some of your work James, might be able to kick start your business.

Marvin

 

[kkthxbye]

Thanks for all of your replies. I've just been doing some reading, and think I will register myself as a Sole Trader to start with, then a Ltd a bit further down the line!

 

[Signify_1]

Hi there,
I was in the exact situation as you. I left my full time job as a graphic designer to run my own design and print company. I registered a new business account with Lloyds TSB who have free banking for 18 months! I have registered with HMRC as a sole trader and have launched a web site. All I have to do now is just sell sell sell and make sure I keep doing business! A good source of information is http://www.businesslink.gov.uk/. Read though all the start up information and after that you should be clear of what action you need to take

Best of luck
Taz

 

[mke]

Avoid Lloyds TSB if you want to run your business bank account on internet banking. The service is the most diabolical I have ever come across. It is in complete contrast to their personal online banking.

If you are happy with M$ web interface security for banking purposes (I most certainly am not) then A&L and the other ex-building societies are fine. Otherwise, it's the other three of the "big four" as was, i.e. Barclays, Nat West, HSBC. each has its faults, each makes a reasonable fist of it, each has a reasonable free banking period for new business customers.

Alternatively, join the FSB for its legal telephone helpline, worth its weight in gold, best tip I can give to any small business, and then try out the deal they have with Co-op bank. Free for all purposes, for ever.

 

[davidakerr]

I can endorse mke's advice on the FSB, best business decision I have made, and the Co-op Business Banking is Free and they give you a dividend at the end of your first year.