Websites and business

[piconto]

Hello all. I would like to start a website that will provide services online. I've got the website stuff sorted out, but what I'm not sure and hoping I could get advice on is how I go about the actual business.

Do I have to set up a business to run the website? I always see websites that have no business details on their website and yet there is financial gain from the services they provide (ads, affiliations, selling etc). How does it work?

Bear with me as this is quite new to me and am trying to figure out what is needed. Thanks

 

[ZipserSir]

Hello.

I never buy from websites that have no business details. Doing so is just asking for trouble!

Do you know what services you are going to offer?

Do you know who are going to be your customers?

These are the basic sort of questions you need to get your head around.

 

[billie1]

You will need to register a business if you are running the website for profit. You don't have to put your personal address on the website as you can use a registered office instead. You can also use a telephone number dedicated solely to your business.

 

[JonathanSEO]

Depends on the services you are selling.

There's technically no such thing as 'setting up a business' in terms of notifying someone about it or a rubber stamp on your website saying 'this is a real business.'

If this is going to be your full time job then it makes sense to setup a business bank account and decide whether you are going to be a sole trader or limited company.

Personally if this is unproven then I'd just see if you can make any money from it before you worry about all those technicalities.

Unless its the sort of industry that absolutely requires the credibility of a business address, vat number etc then try get some clients and worry sort those things after.

 

[Christine Hough]

Hi, we provide an online service too and set up as a Limited company.

There are two ways to go.

You set up a limited company and this has a life separate to you. it will have its own bank account and be taxed separately from you while paying you a salary and/or dividends. To do this you will have to incorporate (and there are a few sites to help you do this fairly painlessly) which is fairly easy but does involve certain requirements and more expensive accounting as you have to submit accounts to companies house.

Or you can trade as a sole trader in your own name. If you do this sales and expenses will be considered all your income/costs and the accounts will be attached to your personal tax returns. This is a cheaper route from the point of view of accountancy costs. But you have to notify HMRC when you start that you are a sole trader.

You can switch from sole trader to ltd company at a later stage if you find the need to. One benefit of being a Ltd company is that the business is separate from you and if things go wrong you cannot personally be held responsible for company debts.

 

[kraldmark]

Hi, a new website is required to start your business.
It is hard to begin, once you start, you need to know who your competitor is.

 

[squeekwheel]

for a new startup web business I'd go with sole trader - only because it will save you money doing accounts and you never know with online businesses - the idea might be great, but it might not work in real life.

 

[piconto]

Thank you all for your replies. I'm somewhat confused from all of the advice given though. The website will offer an online service to computer savy customers.

So if I plan to sell a service on a website, I must either be a sole trader or an incorporated business? I know incorporated businesses have to included their details on their website but what about sole traders? What are the websites I see with no "business details"? They still receive financial gain (ads, affiliations, selling etc).

 

[Christine Hough]

Whatever business structure it is wise to post business details and address from the point of view of building confidence. That some website operators don't give an address is not something you would want to copy as it looks unprofessional, untrustworthy, and is strictly illegal because businesses are obligated to give details of who they are.

Would you really want to do business with a vague non-entity whom you could not contact if something goes wrong?

 

[fisicx]

I know incorporated businesses have to included their details on their website but what about sole traders? What are the websites I see with no "business details"? They still receive financial gain (ads, affiliations, selling etc).

By law if you are trading you must display email, telephone and address. Those who don't are breaking the law. Most will get away with it but some will be reported to trading standards and may get shut down.

 

[add business]

When your going about getting adding business listings to your site there are a few ways to do it. You could simply add the info into your about page, you could link to your plus local listing or profile (author tag).. this is very effective or you could just go about submitting your business listing to the top sites. We recommend to do both at business-lister.com

Richard