Do i really need to register my company yet?

[ladybee]

I,ve quit work mon-fri to concentrate on eretail. But plan on working all weekend at my paye job to put food on the table Do i really need to register with companies house yet if.......

1. Im just starting out, i don't yet know if my idea will work (I hope so ) or what my turnover will be. I have a large amount of stock. Very little out goings (except electricity, gym, food, rent the usual, ink, printer, envelopes, stamps, postage fee's, but can charge those, business cards, probs more bits). Large amount of time and enthusiasm. Planning to use social networking sites for marketing.
2. Im registering my domain name etc, but hosting my own estore, as well as using ebay/amazon etc.
3. My stock will be stored in my bedroom (Clothes/shoes/one off peices). My 'office' will consist of my grandsons bedroom including my computer, paperwork, bits n bobs.
4. I have a seperate savings account which i'll use to purchase stock, paypal etc.

Until i start earning an income that can be estimated do i have to declare my little ah em 'hobby? And do i need and accountant?

 

[Dawn Lane]

You will only need to register with Companies House if you are planning on being a limited company - if you plan on being a sole trader type entity then you don't.

What you will need to do is register with HMRC as self employed even if your takings are not high

You don't need an accountant although you should keep records of what you have spent out/received in to be able to complete a tax return next year. An accountant would give you advice on the best way to keep records and also help with what you can claim for as set up costs etc.

If working from home and keeping stock there, you need to let your insurer know as this could impact on the cost and any claims you may have.

As for bank accounts - it's always best to have a business bank account as a lot of banks are not happy with people using personal accounts for businesses, and anyway, it makes life so much easier when doing your accounts if personal and business money is kept separate. Look around - there are plenty of banks offering free banking for 18-24 months for new businesses.

Good luck with your new venture.

Dawn

 

[SBlundell]

Dawn's given you an excellent response there .

You don't need to register with company's house if you only ever intend to trade as a sole trader (i.e. as yourself). There is no requirement to have a company (although there are advantages & disadvantages to both options).

It's usually advisable to give it a go & see how things pan out as a sole trader for now. If things prove successful over the next few years you can always form a company at that point & transfer the trade from your name to the company's from then onwards (there are various tax considerations at that point, but it's not relevant at the moment).

It's also not uncommon for a growing sole trade to decide to set-up a dormant company if they want to preserve the name for the next few years - although again I wouldn't worry about this yet.

Personally I would give your 'hobby' a go for a few months & see how things pan out - can you actually make money from this?

No you don't need an accountant. I would also suggest most people don't need a mechanic & that it's down to yourself to weigh up the advantages against your tax knowledge, but I'm bias & won't make such a suggestion . However, certainly in these early days I wouldn't worry overly, again see how you're doing in the immediate future.

Oh, & keep receipts for everything!

Best of luck with the new venture!

 

[ladybee]

Yes im hoping too make money from it. Although my business plan is in my head and has been for years. Thanks for the advice both you and Dawn.

 

[Otako uk]

I'm in a similar position and was wondering if i should go for a company or not. I think the dormant company solution just to preserve the name is great.

Good luck ladybee

Mihai

 

[talkinpeace]

Here is a page I wrote just for ebayers - so it will have relevance to at least one of your income streams .....
feel free to print it out and cover it in highlighter
http://members.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace

 

[Websitehandyman]

I would say give the task you full attention and don't worry about paperwork till you see it's sustainable. Personally I wouldn't go around admitting or submitting anything till then - shock horror ! When I first setup many years ago I did that and ended up having to jump though hoops at the bank and mortgage applications etc. Then when it failed and I wanted to claim unemployment I couldn't.

 

[ladybee]

I'm in a similar position and was wondering if i should go for a company or not. I think the dormant company solution just to preserve the name is great.

Good luck ladybee

Mihai

Likewise x

 

[Louiesamael]

Dawn lane hi can you advise me on how work 4hr saturday & 4hrs sunday as soul trader selling what I can buy how Mutch cash will I need to apply for a trade card

1. Im go to try selling in a month time don't yet know if my idea will work weekend to provid for my familey
4. I have a seperate savings account which i'll use to purchase stock, paypal etc.

Until i start earning an income that can be estimated do i have to declare my little ah em 'hobby? And do i need and accountant?[/QUOTE]

 

[elaine@cheapaccounting]

If you are carrying on a trade then you need to register either as a limited company or self employed.

In the circs given here it is not a hobby as the intention is to make money - therefore it is a business and you need to register it.

There is a great thread on sole trader v limited company at the top of the forum - good luck all.