Starting a Business - Beginners Help

[AmnFF]

Hi all,

I've recently started creating small garment accessories (think brooches, tie pins). Primarily made out of recycled materials.

Anyway, I've been selling via ebay and Facebook Marketplace.

Recently, I've been contacted by a small bric-a-brac type shop that wants to stock a small quantity.

I am thinking I would like to register my small brand as a company. Can I just do this as a sole trader? Then complete a tax return at the end of the year. Or do I have to register as a limited company?

It is only me, my partner often helps out. We aren't drawing salaries (yet) but one day that may change. The money I'm making isn't life changing, but I am still aware I need to start registering myself properly if I'm going to supply a shop with a small quantity.

Just wondering which route I should go down to make this legitinate to be able to sell. I want to ensure I'm official, so that tax is calculated correctly etc and that my business is registered.

Many thanks for any advice!

 

[MOIC]

Try and get some free advice from a chartered accountant (or 3), so you can fully explain your position.

I'm sure there will be posts following shortly to point you in the right direction.

Try selling on Etsy, it's a good platform for handmade products.

 

[Scalloway]

You can just register as a sole trader. Registering a limited company means a lot more red tape and the accounting requirements are a lot more stringent.

https://www.gov.uk/set-up-sole-trader

 

[WaveJumper]

Good advice already given If you still in the infant stages certainly you do not need to go the full ltd company route, as others have already advised nothing stopping you running as a sole trader. So do check out Scalloway's link and if need be get some 'proper' advice from an accountant especially if you unsure of the admin side of things.

You will also find other threads on here discussing the difference between going ltd & sole traders so give them a read too.

https://www.ukbusinessforums.co.uk/threads/sole-trade-v-limited-company.60813/

If you think you have a unique brand name you could register that separately for a bit more protection another link to give you some more bedtime reading (sorry)

https://www.gov.uk/how-to-register-a-trade-mark

I know its early days but one thing to watch out for as you grow, especially if you are getting good online sales coming through, once you start supplying products to retail outlets you can suddenly loose control of your price.

They can sell your product well for a few months and then suddenly have a 50% off sale potentially killing your online sales. Just something to look out for in the future (you can always offer retail stores different product to your on line offer to help avoid this)

Sounds like you have the making's of a nice little niche business, welcome to the forum and wish you all the very best

 

[Peter Sen]

Registering as a sole proprietor is a good option according to me.

 

[Chris Ashdown]

If you use a trading name, then even if you dont use it at present try and get a domain name for it, its much better to have [email protected] than fred or anmff@gmail etc

It's great you have been recognised and others want to stock your goods, make sure you present them to the customers well and at a price you can make a profit on