Multi-purpose company

[sparklyscotty]

Hi guys. I am in a weird situation just now because my company has expanded in a few different profitable directions, but legally I amn't sure how I stand...
Basically I design and sell jewellery, but in the process meet a lot of other small business owners. Now I am making money from running their marketing campaigns for them, printing their stationary, and a dozen other little things that are easy and quick for me to do, but outside their realm of expertise.
In addition, purely to create more selling opportunities for fellow crafters/ artists, I have set in motion plans to create a local organization that runs craft events on a regular basis... weird thing is, that the organization looks to make loads of money! So can I run the organization as another offshoot of my own private company and keep the profits?
If I can do all of these things under one company, I might actually be able to afford to run the business full time and give up my job!
-Angel-

 

[Alpha]

Hi Angel

Is there a question here or just a statement??

When you say 'my own private company' does this mean you operate through a limited company or are you using the term loosely but in reality you are a sole trader?

In any case there are very few problems with running all those activities through one legal entity although you are technically require to produce seperate accounts for different sources of trade.

 

[David Harris]

So can I run the organization as another offshoot of my own private company and keep the profits?
-Angel-

It depends on whether you run as an incorporated company or not. If your private company is a limited one then whether you can do this will depend on what the Memorandum and Articles for the company say. Most M&As are drafted to give directors the power to do nearly anything that makes the company a profit, but you'd need to check them.
If your company is not a limited one, e.g. if you are a sole trader, you can do pretty much as you please in running sub-businesses.

 

[sparklyscotty]

Sorry - I do tend to ramble a bit when overwhelmed, but both of those posts answered my main questions.
Concisely: I am a sole-trader, offering many different services (jewellery design, marketing, and event planning). My question now would be- should I keep separate accounts for each?
Thank you for your fast and informative replies.
-Angel-

 

[maddyminx]

Hi Angel,

Thats weird - Im in a similar situation - Im doing a few things and running as a sole trader - I have one main client at the moment and im writing up stuff for their website, selling some of their merchandise and will shortly be helping them to recruit. Im also offering typing services from home to local companies (I had some response to an ad I placed today which is promising) and I'd be really interested to know whether I should be keeping seperate accounts too?

My question to Alan, David or anyone else to help (if you don't mind me bulldozing in on your post) would be: If sole traders do need to keep seperate accounts - would it be for the type of work im doing or would it be for each client?

Not sure if I should've used my own posting so no offence intended Angel, its just that I hadn't thought about that :? so good point!

Maddy
x

 

[Alpha]

In answer to Angel

If your turnover doesnt exceed £15k the you would simply put the total turnover and profits on your self assessment return. If it exceeds this the revenue require at least profit and loss accounts. If they are being run seperately with identifiable costs to each business activity then you would be expected to supply seperate accounts. If not then supply one set.

I suspect that after reading your posts that only one set will be neccessary.

As a sole trader no matter how many different businesses you run the 'profits' are all yours (and the revenues )

Maddy

In your case a single set of accounts will suffice.

 

[maddyminx]

Thanks for the advice Alan

Maddy

 

[sparklyscotty]

Cheers guys. This really helps me out, as I am just about to start writing up my accounts.
Maddy - Good question! I didn't think about that.
-Angel-