New courier business

[knight1]

Hello everyone I have just joined this site and would like to ask if anyone can offer any advice as to whether I should go limited with my new courier business, I have received my business funding and will be operational from monday 30th June 2008. Everything is all set up to go including a new business website, new vans, signage,

Although I am an owner driver although I do have other self employed drivers who will work for me would it be in my interests to go limited.

I am VAT registered, but I have been wondering whether to become limited, what are the implications if any and would it be worth my while.

Any sound advice will be greatly appreciated.

Thank you
Tony.

 

[jholden]

Hi Tony,

Talk to a qualified accountant. The reason I am not saying 'do this or do that' is that from what you have posted it is not possible to advise, although some may try.

However, a few points, a sole trader is the easier method to trade as, a limited company has more 'hoops to jump through'.

Have a look at the sticky on the forum which covers the question.

And congratulations on the new business and good luck.

Jason

 

[KidsBeeHappy]

I think that the most important thing is to make sure that the couriers working for you provide you with full and recent copies of their Goods in Transit, and Business Insurance policies.

I then think that the next most important thing is to get a proper contract/terms of agreement set up which the couriers agree to. So that you have clearly defined where your responsibilities end and the subbies begin. You also need to make sure that the T&C with the customer state that if it's the subbies who cause damage etc, then it's their responsibility/insurance etc.

I think that this will protect you more so than differences between sole trader and ltd co.

 

[g.harding]

Hi,
It is usually best to go limited and it's easy to set-up too. I'd be tempted to minimise the business risks and not borrow set-up costs unless you have to. Lot's of businesses will tell you that borrowing money is the only way forward, but they are usually the ones that want to lend the money.

For this form of business I would suggest a good insurance is taken out.

If you need any help with product development then please let us know. We might be able to help.

Gary

 

[MH1]

For this form of business I would suggest a good insurance is taken out.

No-one will put business through you without the correct insurances, hence the reason Boxby correctly advised checking all subbies insurance details.

One important thing, make sure you do get "courier insurance" written onto your insurance documents, the larger companies such as TNT insist on this these days, you never know who will become a client.

Ref the checking of the subbies docs, just seeing them is not enough, you need to email the companies too ensure they are current and correctly paid up, and then check again on a regular basis, when the drivers hit hard times their insurance is one area which can be pushed to one side for a while, which doesn't help you in the event of a claim.

 

[Lyndon Wood]

Hi Tony

Good luck with the business.

Firstly and dont answer online but for your thoughts:

1. do owe money on thebusiness interms of loans and overdrafts?
2. do youplan to make a healthy pre tax profit in ecess of 100k

If yes to both or one then go ltd a sit has some protection of personal assets. if no then stay sole trader as you will benefit tax wise. Do ask an accountant though.

Secondly insurance, a friend of mine got agreat dealon his courier business. Goto a broker and ask they use Xbroker.com who have a great courier package scheme all in cheap ! i recomend a company called Wilsons up north.

Lyndon Wood

 

[john.thomson]

Go on the website Join2Grow, you'll receive good advice from qualify persons with a lot of experience. I'm sure, it gonna help you. Good luck.

 

[jholden]

John,

No more help on Join2Grow than there is here, in fact as a lot of the members are overseas I would say there is far more help on this site!

Jason