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    • Beatle Ray
    • By Beatle Ray 3rd Jan 18, 10:54 AM
    • 137Posts
    • 25Thanks
    Beatle Ray
    Starting a new business, guidance please
    • #1
    • 3rd Jan 18, 10:54 AM
    Starting a new business, guidance please 3rd Jan 18 at 10:54 AM
    Hello,

    Need some help please, I am currently employed but have been told in confidence by the MD that the firm is going to close in the next couple of months and the customers I work on I can continue to do so on my own if I want to, this will mean I will need to start a Ltd company and will have to register for VAT, I expect my turnover to be approx. £200,000+ in the first year, can I do this whilst still employed, I will be working from home and is there a website that I can go to where I can start proceedings and register the company, any help and guidance that anyone can offer I will be grateful for, as I say I expect the business to start end of Jan or end of Feb, it all depends on our clients paying the existing business and the due process of shutting it down, I will be made redundant and will be using a large put of my redundancy to start the business with cash flow
    Thanks in advance
Page 1
    • fishybusiness
    • By fishybusiness 3rd Jan 18, 4:10 PM
    • 1,139 Posts
    • 703 Thanks
    fishybusiness
    • #2
    • 3rd Jan 18, 4:10 PM
    • #2
    • 3rd Jan 18, 4:10 PM
    For that level of turnover I would recommend you go out and find a good accountant before you commence trading.

    Put everything in order, T&C's, invoicing, bank account, insurances, maybe a bit of tax planning etc so you more or less hit the ground running.

    Try companiesmadesimple.com for creating your ltd.
    • trailingspouse
    • By trailingspouse 3rd Jan 18, 4:56 PM
    • 2,602 Posts
    • 4,029 Thanks
    trailingspouse
    • #3
    • 3rd Jan 18, 4:56 PM
    • #3
    • 3rd Jan 18, 4:56 PM
    Even though this appears to be a ready made business, you still need to do a business plan and make sure you crunch all the numbers.

    The big question I would be asking myself is - if the firm is closing, why are they closing, and why do I think I can make a turnover of £200,000 in year 1.
    • Pennywise
    • By Pennywise 3rd Jan 18, 7:15 PM
    • 9,622 Posts
    • 17,706 Thanks
    Pennywise
    • #4
    • 3rd Jan 18, 7:15 PM
    • #4
    • 3rd Jan 18, 7:15 PM
    First question for an accountant. Do it need to be a limited company? Second question, does it need to be VAT registered? Make no assumptions and properly research your options in both these areas.
    • soolin
    • By soolin 4th Jan 18, 8:43 AM
    • 59,740 Posts
    • 42,408 Thanks
    soolin
    • #5
    • 4th Jan 18, 8:43 AM
    • #5
    • 4th Jan 18, 8:43 AM
    As above, get proper advice as this is not something you should attempt to muddle through with no idea where to start. If this goes wrong you could stand to lose money, so get it right from the start even if that means paying out some real money to do so.

    I am also concerned at the statement in your OP " it all depends on our clients paying the existing business ", does this indicate that you are to be palmed off with clients who have a history of not paying, or paying late?
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    • martindow
    • By martindow 4th Jan 18, 12:25 PM
    • 7,352 Posts
    • 4,130 Thanks
    martindow
    • #6
    • 4th Jan 18, 12:25 PM
    • #6
    • 4th Jan 18, 12:25 PM
    I don't think you can assume that all of the clients will transfer to you - some may go elsewhere in the next few weeks if they get wind that the company is in trouble.

    Assuming you do get the clients will some of them have been promised work for which the company has already received money? You don't want to start off with clients who expect you to do work for them and don't expect to pay you.
    • motorguy
    • By motorguy 4th Jan 18, 12:27 PM
    • 15,957 Posts
    • 9,221 Thanks
    motorguy
    • #7
    • 4th Jan 18, 12:27 PM
    • #7
    • 4th Jan 18, 12:27 PM
    First question for an accountant. Do it need to be a limited company? Second question, does it need to be VAT registered? Make no assumptions and properly research your options in both these areas.
    Originally posted by Pennywise
    Also, depending on the type of work, some clients will only engage with a limited company (or an umbrella company) so it would be worthwhile understanding that relationship too
    You are not special. You are not a beautiful and unique snowflake.
    • motorguy
    • By motorguy 4th Jan 18, 12:28 PM
    • 15,957 Posts
    • 9,221 Thanks
    motorguy
    • #8
    • 4th Jan 18, 12:28 PM
    • #8
    • 4th Jan 18, 12:28 PM
    I don't think you can assume that all of the clients will transfer to you - some may go elsewhere in the next few weeks if they get wind that the company is in trouble.

    Assuming you do get the clients will some of them have been promised work for which the company has already received money? You don't want to start off with clients who expect you to do work for them and don't expect to pay you.
    Originally posted by martindow
    +1

    I'd be aiming for 50% and see how the numbers look.

    A lot of companies may not wish to deal with a one man band outfit.
    You are not special. You are not a beautiful and unique snowflake.
    • Percy1983
    • By Percy1983 10th Jan 18, 12:47 AM
    • 4,966 Posts
    • 7,820 Thanks
    Percy1983
    • #9
    • 10th Jan 18, 12:47 AM
    • #9
    • 10th Jan 18, 12:47 AM
    Why not just take over the current business as a going concern?

    As above you need to get proper advice as this doesn't seem to be a simple situation.
    Have my first business premises 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
    • Beatle Ray
    • By Beatle Ray 10th Jan 18, 3:33 PM
    • 137 Posts
    • 25 Thanks
    Beatle Ray
    Hi Percey 1983,
    Thanks for the reply but that would take a lot of money as an investment and the main clients are going elsewhere so not really an option
    • Credit-Crunched
    • By Credit-Crunched 10th Jan 18, 6:39 PM
    • 2,086 Posts
    • 4,096 Thanks
    Credit-Crunched
    Hi Percey 1983,
    Thanks for the reply but that would take a lot of money as an investment and the main clients are going elsewhere so not really an option
    Originally posted by Beatle Ray
    What sector are you working in, what client base do you have, do you have any experience of running a company?

    £200k 1st year turn over is significant for a one man band.
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