Set up small business - currently self employed?

It sounds like you've got a bit confused over the company structure!

Can we take it that ideally you would like to remain a sole trader (self employed) but would just like to protect your trading name? That's easy to do, you can be called Joe Bloggs but use whatever trading name you wish as long as you aren't imposing on any trademarked terms.

The best way to protect your chosen trading name is to set up a dormant limited company. Any company formations website should give this option. It effectively sets up a non-trading limited company so no one else can register that name later. If it is unlikely that someone would want to use your trading name you don't have to bother with this, but as it costs very little it is probably worth it.

To protect your trading name further you could trademark it. This will cost more and is more involved so whilst still a good idea needs some more thought as to how valuable your trading name is.

Company formation websites affiliate with various banks, presumably they receive a fee for this. If you go down the route of an active Ltd company then yes you will need a separate bank account as the Ltd is a separate legal entity. As suggested above though perhaps just remain a self employed sole trader for now.

For specialist advice give Business Link a call or most accountants offer a free initial consultation. Also check out your local enterprise agencies, some will give you one to one startup advice if you would like it.

I am confused - you state that you want to set up a business yet you are already self employed (surely if you are self employed then you already have a business??).

it is possible to have a website for your business without having a limited company. A limited company is good in some respects and bad in others e.g. you have to pay corporation tax and vat as well as any tax and NI for your employees and pay yourself a wage from which you take tax and national insurance. You need some specialist advice to set up a limited company and as someone else has said you can contact businesslink for free https://www.businesslink.gov.uk or speak to an accountant.

It is always wise to have a separate account for your business as you need to keep business and personal money separate. It makes it easier for you especially if you are sending invoices as some companies don't want to send payments to a personal account eg. john smith but will pay to john smith trading as Fripps Frapps. It also helps the tax man and you need to keep about a third of your takings aside for the tax man anyway. It is also wise to employ an accountant because they can save you money.

steveOooo wrote: »

I want to trade under a new business name name - ie advert in yellow pages will have this name

I want a website with this business name - So i assume i need to get it set up as a trading busniess - dont think i need to worry about trademarks.

A "trading business" as you put it doesn't have to be a new entity. You can use whatever you want as a trading name without having to do anything, as long as you aren't infringing on another name.

So just choose your website domain and your trading name and away you go. Simples!

You can register as many domains as you want and don't have to do anything about registering companies. Domains and companies are two completely separate things. Sure a dormant company can't help protect a domain name but don't think you have to go down this step.

The bank account is then something else, do you even need a new one at this stage?

Be aware that if you create an active company you will have some annual obligations that may be costly to fulfil. It is also difficult to disband a Ltd company. Don't be fooled by the low cost and 10 minutes it takes to form, having an active Ltd company is a big step. Please seek advice and don't register until you are satisfied it is the right thing to do.

paulwf wrote: »

Wanted to keep this separate from my main post as slightly off topic but if you are self employed it is worth having a current account separate from your private one, keeping your business and private money separate will help you with your tax affairs.

From a practical point of view it would be better to have a seperate business account because it will make it much easier to analyse your business expenditure when you come to do your tax return. If you're going to employ an accountant it will make things much easier for them, which means it will take them less time and theoretically they'll charge you less.

On the downside if you open a business account you're liable to get charged for anything and everything by the bank.

Find a different place to advertise too - the Yellow Pages is mightily expensive.

Business banking is free for a certain period - I know that when my free banking runs out I will switch to the co-op business bank but only because I am a member of the Federation of Small Businesses and get free banking for life as part of my membership.