Opening a business 101? (Tattoo Studio)

[Pr0jectX]

Hi, new here and seems to be a good place to be lurking and absorbing information.
Thinking about opening a tattoo studio, with an artist that has been working for tattoo shops in Spain for around 10 years.
I've been working in a fast food chain located in London for the same period of time, and have some experience dealing with suppliers, stock control, etc.
We are planning to open a place in here in London, where he will deliver (the tattoos) and I'll be responsible for the paperwork stuff.
However, at the moment I am not sure what are the requirements for us to start rolling.

First of all, my impression is that what we want to set up is a Ltd., where both of us will act as directors.
If so, the next thing to do would be to follow the steps in the goverment website about setting up a limited company.

In order the get the green light we need the "Tattoo, piercing and electrolysis licence", which is issued by the local council.
To get one, we also need a "Public Liability Insurance".

We'll also need to apply for "TheMusicLicence" from PPL PRS ,if we want to avoid any type of copyright claims possibilities if we have a spotify playlist on the background, is that correct?

Then, I am not so sure about the licence about processing personal data issued by the ICO.
If we decide to keep a log of customers + adding CCTV's, we do have to apply for it, right?
What about if the log is just name + phone number and no CCTVs? Or the same but with CCTVs?

Then, we have the part about the space we will operate from, which might be first on the list actually, and where I am the most confused at the moment.
As someone who has been living in rooms with 6 months, 12 months, etc. contracts, I am a bit overwhelmed with words that I've never heard in my life.

If I understood correctly, leasing is just like renting, but with 5 - 10 years (depending on the contract.)
What if let's say, we have a contract of 10 years and the business doesn't pick up, or unexpected events cut our revenue to the point where we have to close.
Are we personally (from our pockets, and not from the business account) responsible to cover the contract?
Or is it like "you didn't pay last quarter, we kick you out and keep the deposit" kind of thing?
I guess it depends on the clauses stated in the contract, but what is the standard/common/average practice when businesses doesn't make ends meet and have many years on the lease left?

Then, I read that there are different types of commercial properties (A1, A2, etc), and that tattoo shops are in the category of "sui generis".
Does that mean that we could technically rent any commercial place and set up a studio in there?

Is there any recommended website to look for places to lease?

I think that's it for now, worth to mention as well that, while we don't have unlimited budget ( we haven't decided yet how much we will put each ), we rather not depend on loans,
or external companies such accountants unless extremely necessary. We, (well, I) prefer to understand the nuts and bolts of whatever is needed, and put the time myself at the beggining.

TL; DR : Questions about opening a tattoo studio.
- Is setting up a limited company what we are looking for?
- Is there any more licences or legal requirements to start?
- How does leasing work?

(Please, don't make this thread a pro tattoos/ anti tattoos debate please please, )

Thanks in advance , John.

 

[Mark T Jones]

You are right to be asking about premise leases at this stage - it can be a messy area and the only good advice is to pay for professional legal advice.

In the meantime, to get a list rolling, here are some of the things you need to look out for:

- Rent deposit
- concessions (rent free / contributions to refurb etc)
- Utilities.
- Dilapidations.
- rent reviews
- Break clauses
- Personal guarantees

I'm sure others can add to the list..

 

[Scalloway]

First of all, my impression is that what we want to set up is a Ltd., where both of us will act as directors.

The very next thing is draw up a shareholders agreement. This forum is full of posts where partners have fallen out and have no clear way forward,

 

[WaveJumper]

Welcome the UKBF good hear someone feeling positive about starting a new venture. So many questions where to start.

I would perhaps go to the GOV.UK website and read up on the differences between Ltd companies and partnerships as a start.
https://www.gov.uk/set-up-limited-company

Finding the right premises in the right location is not going to be as easy as you think. Regarding leases etc you really do not want to be signing up for anything long term.

Have a look on the ICO website take their self-assessment test and this will give you a good idea what you may or may not be required to do:

https://ico.org.uk/for-organisations/data-protection-fee/self-assessment/

Would recommend having a word with our forum member @Frank the Insurance guy

The overriding advice from me here is make sure you get proper professional legal help, whether this be setting up you company articles / shareholders agreement, property leases etc don’t try to save a few pounds this forum is littered with those who did not seek out the proper advice and now wish they had.

I am sure other will be along with far more helpful hints and I wish you the very best of luck and again welcome to the UKBF

 

[Frank the Insurance guy]

Hi @Pr0jectX - good luck in your new venture.

In terms of Insurance, you mention Public Liability, but as there are 2 of you, you must also have Employers Liability (that is a legal requirements!).

If you are spending out on a fit out and have some expensive equipment etc, you should also consider insurance against damage to your property.

There are specialist companies that cater for your type of business, so would suggest have a chat with them - eg. https://www.tattooinsure.co.uk/

 

[Alan]

You have had answer but I'll add my view

First of all, my impression is that what we want to set up is a Ltd., where both of us will act as directors.

50:50 is fine until, you can't agree then it all goes pear shape as no one can decide. Hemnce shareholder agreement to cover this at least.

To get one, we also need a "Public Liability Insurance".

Insurance is required, not just PLI - but is trivial in the scheme of things, talk to a broker get quotes.

We'll also need to apply for "TheMusicLicence" from PPL PRS ,if we want to avoid any type of copyright claims possibilities if we have a spotify playlist on the background, is that correct?

Just do it - trivial in the scheme of things

Then, I am not so sure about the licence about processing personal data issued by the ICO.
If we decide to keep a log of customers + adding CCTV's, we do have to apply for it, right?
What about if the log is just name + phone number and no CCTVs? Or the same but with CCTVs?

£35 - trivial - just do it

different types of commercial properties

Complex - get professional help and advice

we rather not depend .... external companies such accountants unless extremely necessary.

You will regret that.