Funding a startup

[Murfy-J]

At the moment my company hasn’t traded as we are building the platform. My problem is we need buy some new hardware and we have a business card but I’m not sure about the rules around using cards and paying back the credit card when the company is in a dormant development phase.

I need to know more about what is ok to do and hat isn’t regarding company funds and cards.

Any advise or course that you think would help would be amazing

 

[fisicx]

Has the company got any funds in the account?

If so just use the card. If not use your personal card and claim the money back when you start trading.

 

[Murfy-J]

Has the company got any funds in the account?

If so just use the card. If not use your personal card and claim the money back when you start trading.

The only funds I have are my wage from my job and what’s available in the company credit card.

 

[fisicx]

Then just use those funds to buy the hardware. You can sort out the accounts later.

 

[Mark T Jones]

The terms of paying back will be in the t & Cs of the card.

 

[Murfy-J]

The terms of paying back will be in the t & Cs of the card.

I was under the impression that it would cause issues paying back a company card with personal funds and not company. I think I need to find Mir windows around company accounts along with the dos and don’ts

 

[WaveJumper]

Sole trader or ltd

 

[Murfy-J]

Sole trader or ltd

Ltd.

 

[fisicx]

You are overthinking things. Just buy the kit using your personal card and pay yourself back once the company has funds.

 

[Paul Kelly ICHYB]

rules around using cards and paying back the credit card when the company is in a dormant development phase.

Use the card and ensure it is paid off, ideally in full, if you as much as possible.

Re paying the money back, if the business doesnt have funds, you lend the business the money!

 

[WaveJumper]

I may have miss read the original post, but had the feeling Op was going to use the business credit card of a dormant company, so I could be slightly confused, technically then is the company still dormant if its making transactions.

One of those situations in my book where a trip to the local accountants is perhaps called for to set things straight and get the foundations right from the get-go ie funding the company (or not) claiming expenses etc etc

 

[Murfy-J]

I may have miss read the original post, but had the feeling Op was going to use the business credit card of a dormant company, so I could be slightly confused, technically then is the company still dormant if its making transactions.

One of those situations in my book where a trip to the local accountants is perhaps called for to set things straight and get the foundations right from the get-go ie funding the company (or not) claiming expenses etc etc

You are correct, the company isn’t trading at the moment as the platform is being developed.

As you can tell, it’s my first time with a. Ltd company and I don’t fancy ballsing it up before it’s even started ?

 

[fisicx]

Nothing to balls up. Just use your personal credit card and invoice the company. But as soon as you do that it’s no longer dormant. So I suggest you hold the invoice until you launch.

 

[Ditata]

When you say dormant, do you just mean you've registered the company, started building you product but the company hasn't actually started taking money from customers?

There's not much too balls up and so long as you're not intent of doing anything dodgy, whatever you do an account can just resolve when doing the accounts.

Buy the stuff and get cracking with the project! Good luck!

 

[Murfy-J]

When you say dormant, do you just mean you've registered the company, started building you product but the company hasn't actually started taking money from customers?

There's not much too balls up and so long as you're not intent of doing anything dodgy, whatever you do an account can just resolve when doing the accounts.

Buy the stuff and get cracking with the project! Good luck!

That’s exactly it, they company was registered but we haven’t got any customers yet.

Thanks for the encouragement, I’ve just been warned by a family member who ran a company many years back and to be honest he made it sound like a life of death thing when accounts and fines.

 

[WaveJumper]

As advised above keep it simple use your personal money for the time being (keep all records) On the dormant company side of things just watch out for filing your dormant company returns, easy to do on CH these days its quite straight forward, I would also write / call HMRC and confirm company is dormant then they won't chase you for any returns regarding corporation tax. And you won't fall foul of the powers to be and receive any nasty little surprises like fines. It's ignoring these little things which can catch you out.

If you have not done so already set up email reminders on CH then you won't get caught out. Best of luck with your new venture and keep us up dated on how you're getting on.