Start Up Legal Structure & Best Practice!

[AdamMilne1]

Hi!

In the simplest terms as possible this is my question:

I am in the planning stage of starting up a Mobile Valeting business. I have done significant amounts of research into all the required areas that are relevant however I would be extremely grateful for any advice/information regarding the best format in which to set my business up i.e. sole trader, limited company, partnership etc.

Initially my plan was to begin as a simple sole trader as I would still be continuing with my current employment and running the new business in my spare time in the evenings and weekends until business picks up. However, as my current employment is in the form of self-employment (registered with HMRC) as a construction contractor, as I understand it any income I get through the the new Valeting business will be added to my current income as a self-employed contractor as far the HMRC is concerned in terms of any Tax payable etc.

Am I correct in assuming that as I am already self-employed I would not be able to keep any income from the valeting business separate from my current income as I would be registering as a Sole Trader? If this is correct what would be the next best legal structure to take to enable me to keep my current employment income separate from any income from the new business?

Any help and information would be massively helpful and appreciated as I have up to this point researched this problem for myself but to no avail.

Many thanks

 

[StevensOnln1]

What are you trying to achieve when you talk about keeping your two sources of income separate. You don't appear to have any employment income if all of your construction work is done as a self employed contractor, that would be self employment income.

 

[Jeremiah@RHJ Accountants]

As mentioned above you are already self employed and would thus complete your self assessment each year.

This business would just go on the self assessment each year.

Have a read of this to see the difference between Sole Trader and LTD

http://www.rhjaccountants.com/accountancy-faqs/sole-trader-or-limited.php

 

[UK Contractor Accountant]

As a self-employed person you would have two seperate trades active. One for construction work and one for the valeting activity.

Seperate books and records and accounts would be needed for each activity. Would also recomnend operate two seperate bank accounts.