Starting an online store.. Need advice

[adamjblakey]

Hi,

I have recently decided to start an online business as i have found quite a good niche/product(s) to sell and my background is SEO and online promotion.

I have constructed a very nice e-commerce site, which i am currently in the process of inputting the products to.

Although i have built many e-commerce sites for customers before i have not really had experience with the business side of things, as this is the first time i have constructed one for myself.

I need advice on where i need to go to set-up the company name, what type of registration will i need and is that the only thing i need to do?

I anticipate around a 20k profit turnover within the first year so from what i have read i will not need to be VAT registered.

I am planning on still keeping my current job earning up to 30k so will this effect anything i need to do?

My wife will be helping me with the company as she is currently a house wife, so can do the majority of the customer relations side. Would it be better to register the company in her name or my own seeing as i have a permanent job already and she doesn't?

Also who would you suggest to bank with for a business account? and also take payments with online? as i have never used anyone but pay pal before and this was not in a business environment.

Any comments and help on this matter is very much appreciated.

Adam

 

[lex]

www.businesslink.gov.uk

 

[asonda]

BANK - With Regards to the bank, If you want to keep costs down (as we all do) I'd like to sugest Alliance and Liecester Commercial Bank...just google that... You get free banking and low low charges...I've been with them since the beginning of my business and had no problems at all! Very nice people...

PAYMENT - PayPal, have now got a Virtual Terminal, which is basically an online version of a credit card machine, so aslong as you Encrypt your payment pages with SSL, you can retrieve their card numbers then input them yourself, or just use paypal as it is.....People generally try to make this bit hard for themselves....think logically about it, and think about how you need to keep costs as low as is possible...

CURRENT JOB - I'm not too sure but, aslong as your on the PAYE scheme, I.E paying tax as you work, your existing job won't matter...I don't think, I hope someone can back me up on that...Since working for myself, I haven't had a second job!


COMPANY NAME - If you want to set up as a ltd company, then OZZY, the guy that set up this forum for us all..has a quick formations company, I think it would be wise for you to contact him and have a little chat...

You could always set up as a Sole Trader, remember though that all financial liabilities are on you, and not on the business, allowing YOU to become bankrupt in the worst circumstances, where as if you had it set up as a Ltd company, it'd just be your company that goes int liquidation...

Best Regards, All the best

Jamie

 

[adamjblakey]

Thanks a lot for your reply asonda,

Great information there and sets me in the right direction. I will contact OZZY now to setup the company as i really don't want to go as a sole trader after knowing the possible outcome.

Adam

 

[asonda]

If you ever need any help with anything computer wise, then please don't hesitate to contact me, via e-mail, PM or Phone, You'll have to PM me for a mobile number, as my normal phone number is playing up!

There are many people on this forum, that can offer you generous discounts and LOTS of information! Stick around and you won't be dissapointed.

Always happy to help a fellow UKBF'er!

All the best

Jamie

 

[chazzychaz123]

Hi all. Thinking about starting an online shop selling CD's, DVD's and Games. Just wondered if anyone knew where i can buy in my stock? Have searched online but cant seem to find anything.

 

[Christiane]

Re VAt you can register voluntarily but otherwise you may wait until you reach the threshold (not sure, i think it's around £67k turnover at the moment), rolling year which means as soon as you reach the 67k you need to register.

Sole trader vs Ltd co, you'd need to see an accountant who can advise you best. My accountant has advised I'm still better off trading as sole trader when I thought it was time I set up as a Ltd co.

On the tax point of view, again an accountant may advise you best but the tax you pay with your job would be offset agains the profit of the business. If your wife has no job then the estimated 20k profit will be liable to tax. Your wife could be an employee and earn minimum wage, this way it will show as a cost to the business.

If you register as sole trader, your tax code won't change and the company you work for won't know, if you're not ''competing'' with them etc, you don't have to tell them.

A lot of people on the forum use protx with a Streamline merchant account for payment processing, but you need a business bank account
(Abbey and Alliance & Leicester both do free banking).

Good luck.

 

[who_me]

www.businesslink.gov.uk

With that many questions i agree with Lex, they are a one stop shop.

 

[Rain]

www.businesslink.gov.uk

Believe me, They help A great deal, they have idiot/Newb proof guides on there, Helped me with my studies too .

 

[nikemaxbiz]

Hi,My freind
What product would you sell online??? We can have a chat with the product
because I have plenty of product can help you to sell online. and I have expeirence of 3 years for online business...
Hope to hear from you soon
MSN: nikemaxbiz(at)hotmail(.)com

 

[Mister B]

Another resurrected thread....

Mister B

 

[Sarah_T]

I have recently decided to open my own online store selling jewelry and clothing and wondered if anyone had any pointer as to where to start with building the website and also the best way to go about finding contacts?

Sarah