The very first steps as sole trader

[spanish_inquisition]

Hello,

I am struggling to understand which are the very first steps to register a business and become sole trader. Let me tell you what I think I need to do and PLEASE correct or add the information. THANK YOU (that is shouting, yes )

1- choose a name. No need to register it as it is not a company, is a small business. The name do not need to be my name but all stationery needs to have my full name, address, telephone number.
-question: do I really dont need to register name? how do i protect it?

2-Register with HMRC as self employed and keep all spending receipts and earnings (eg. monthly all inside envelope with months name).

3- No need to worry about VAT in goods (I don't think I will have over 70 thousand turnover), so prices do not show VAT excluded/included/exempted.

Please post comments. I would really appreciate them.

Regards
S.I.

 

[Drpepper]

Check the name you want to use isn't a registered trademark, if it isn't registered get it done, about £200, this is quiet important www.ipo.gov.uk

 

[Eagle]

Trade marking is really your next step - all the rest is pretty spot-on. Good luck!

 

[spanish_inquisition]

Check the name you want to use isn't a registered trademark, if it isn't registered get it done, about £200, this is quiet important

Hi DrPepper,

I think trademark name and small business name are different things. I think.
The link you passed is great to read more about the subject. Thank you.

The page I have been looking at is "national business register" for name registration. Does anyone know about this "national business register"?

First I read somewhere that only companies register their names and no businesses...

Please:redface: confirm me that I am right about the other points, e.g. VAT payments. Please add any comments for any other important step.

Thanks a lot

Regards

 

[spanish_inquisition]

Trade marking is really your next step - all the rest is pretty spot-on. Good luck!

Thank you. Then trade mark... I really thought that is for big businesses, that for sole trader small business name is only a question of registering as... I dont know... small business name, but no trade mark.

Regards
S.I

 

[Drpepper]

The national business register is a scam - don't reply, apply or fill in any forms.

Your business name, no matter small a business you are is what you want to protect - trademark it without question. As a sole trader you don't have to register the name with anyone else. Your bank accounts etc will show Mr X trading as XYZ.

No need to worry about VAT until £70k turnover, unless you are making a lot of purchases that carry VAT then it may be worth doing it to reclaim the 17.5%.

 

[spanish_inquisition]

The national business register is a scam - don't reply, apply or fill in any forms.

Thanx.

Your business name, no matter small a business you are is what you want to protect - trademark it without question. As a sole trader you don't have to register the name with anyone else. Your bank accounts etc will show Mr X trading as XYZ.

No need to worry about VAT until £70k turnover, unless you are making a lot of purchases that carry VAT then it may be worth doing it to reclaim the 17.5%.

i make loads of purchases with vat. then, how i reclaim it?

thank you very much. regards.

 

[Drpepper]

You now have to register for VAT online www.hmrc.gov.uk and then file a vat return every quarter. Any money due or to be credited will go through your bank account about six weeks after quarters end. Remember though that once registered you will have to charge VAT on you services/products where applicable - this will add about 2% to your retail price or less in profit.

 

[spanish_inquisition]

One more thing about trade mark/name registration.
It says that
Trade marks are not registrable if they:

• describe your goods or services or any characteristics of them, for example, marks which show the quality, quantity, purpose, value or geographical origin of your goods or services

And the name I want for the business contains the word of what it is, so I guess I cannot register the trade mark.
Isnt it there another way to register name of small business? I do not want to change its name to make it easy for people searching in internet for similar products (eg. mugs; name "mugs surprise", is just an example).

Thank you for all your help. I could drive myself crazy without your advice.

 

[Drpepper]

One more thing about trade mark/name registration.
It says that
Trade marks are not registrable if they:

• describe your goods or services or any characteristics of them, for example, marks which show the quality, quantity, purpose, value or geographical origin of your goods or services

And the name I want for the business contains the word of what it is, so I guess I cannot register the trade mark.
Isnt it there another way to register name of small business? I do not want to change its name to make it easy for people searching in internet for similar products (eg. mugs; name "mugs surprise", is just an example).

Thank you for all your help. I could drive myself crazy without your advice.

Have a search on their site for trademarks that are already registered but contain similar words that you would like to use, this will give you an idea as to whether it's possible to trademark your name/logo. There is no other way to protect you business name as a sole trade, and there is no need to register your business name if you are a sole trader. Just be aware that at some point in the future you business name could be trademarked by another company/person who could then force you to change your business name/logo plus pay £0000's in compensation.

 

[spanish_inquisition]

You now have to register for VAT online and then file a vat return every quarter. Any money due or to be credited will go through your bank account about six weeks after quarters end. Remember though that once registered you will have to charge VAT on you services/products where applicable - this will add about 2% to your retail price or less in profit.

Then, if I want to get VAT refund, I have to charge VAT (Even if I do not go over 70,000 turnover).
And if I do not charge VAT I cannot get refund on expenses.:redface:
Thank you

 

[Drpepper]

Then, if I want to get VAT refund, I have to charge VAT (Even if I do not go over 70,000 turnover).
And if I do not charge VAT I cannot get refund on expenses.:redface:
Thank you

You've got it, once registered you must charge vat on every sale no matter what your annual turnover is. If you are not registered you can't claim VAT back, but then you don't charge it either.

 

[MASSEY]

If you register a ltd company and keep it dormant then set up as a sole trader with the same name missing of the ltd obviously, that is cheaper than all that ipo crap, and you get the option to go ltd later if you want.

Am i right?

 

[Drpepper]

If you register a ltd company and keep it dormant then set up as a sole trader with the same name missing of the ltd obviously, that is cheaper than all that ipo crap, and you get the option to go ltd later if you want.

Am i right?

Being Ltd doesn't protect your trademark/logo/company name. If you set up as "Joe Bloggs Ltd" someone can register "Joe Bloggs" as a trademark and force you to change your trading name - I've seen it happen to a Ltd company, they had the option to pay £10k to take the trademark or re-brand.

 

[Chaddesley Accountants]

Regarding the VAT question I think the main thing you need to consider is who your customers will be.

If they will be mainly other businesses then I would suggest that it is probably advisable to register for VAT as most of them will probably be VAT registered and so they will be able to recover the VAT that you charge them.

If your customers will mostly be the general public though, as has been pointed out, registering for VAT will mean that you have to charge them more or reduce your profit margins.

 

[MASSEY]

Being Ltd doesn't protect your trademark/logo/company name. If you set up as "Joe Bloggs Ltd" someone can register "Joe Bloggs" as a trademark and force you to change your trading name.

I didn't know that, but surely if you have had your business for a while and been paying tax etc you can get them for trying to stael your customers etc.

I doubt a sole trader can force a ltd company to change their business name, afterall it has to be approved in the first place. I think your getting your info confused somewhere here,

Maybe someone else wants to step in and enlighten us?

 

[Drpepper]

I didn't know that, but surely if you have had your business for a while and been paying tax etc you can get them for trying to stael your customers etc.

I doubt a sole trader can force a ltd company to change their business name, afterall it has to be approved in the first place. I think your getting your info confused somewhere here,

Maybe someone else wants to step in and enlighten us?

Honestly it happens, I've seen it - the company I know were running for about 18 months before an individual trademarked the name/logo with the single intention of what amounts to blackmail. Check out www.ipo.gov.uk for other examples.