Starting own business - advice needed please!

sophie131

Hiya!
I'm looking to open an online shop. Ideally i'd love to open a real shop at some point but I don't feel it's sensible at the moment.
I'd be buying from a wholesalers and selling on, doing it all myself.
So here's the question:
How do I register as a business!? I've looked it up, but it's all quite confusing e.g what type of company would I be (limited etc). I don't have any idea how to go about it really.
Any help would be really appreciated!
Thanks!

CLAPTON

you would be better to trade as a sole trader initially.... no real paperwork required

for that all you need to do it tell the HMRC within three months of starting trading and start paying class 2 NI (unless you get a low earnings exemption)

obviously keep detailed books of all your income and spending, keep receipts etc. as after year end you will need to complete a self assessment tax form

you will need a bank a/c

how are you going to trade online... set up your own electronic shop or use ebay or similar?

sophie131

I would set up an online shop, but may also sell on ebay.

I already have a low earnings certificate from being 'self employed'.

Do I need to have a seperate bank account to the one I have at the moment?

sophie131

What do I need to be able to actually use a wholesalers. Would setting up as a sole trader enable me to be able to buy stock?
It's all so confusing!

PasturesNew

Each wholesaler will have its own criteria to be able to buy goods from them. Some might require minimum orders, some might want to see your headed paper. A few might require you to be a registered Ltd company. However, I suspect at the moment they are more open to new customers. You will, however, most likely be expected to pay in full for the goods when you order them (no credit account).

As you're already self-employed, you'd simply buy things from a wholesaler, sell them on, keep records/receipts of all your transactions and enter this as part of your annual tax return.

sophie131

My Mum seems to think i'd need an accountant - would I?
Sorry for all the questions!

lincsdan86

sophie131 wrote: »

My Mum seems to think i'd need an accountant - would I?
Sorry for all the questions!

unless you wish to complete your own tax return each year, it might be an idea to get an accountant, but some of these can be costly (I should know, I am one:rolleyes:)

mizzbiz

In the initial stages a good starter book on book keeping would be fine. As long as you can do your sums, spot anomalies and balance everything, you should be okay. You can also get an accounts package such as Sage, which automates most of the process for you.

The accountant stage will come later when you have a bigger turnover.

Freedomcreature

Hello :T
Just a few tips I have learnt along the way .....
It's best to keep it simple.
Starting an online shop is not that cheap or easy. Depending on what you sell you may well be better off selling via another site - such as ebay, ebid, etsy (handmade) etc. to start off with. This will give you the chance to test the product without very much outlay ( in comparison!).
Keep the accounts simple, they can be done on your computer or in a simple accounting book, go with what you know and understand. If you do set up a shop through say ebay then you will find that you have easy access to all the information on the products you buy and sell, as they keep a record for you - this also applies to paypal, you can then download this information to your computer (and/or print it directly from the website). If you want to use an accountancy computer package be careful of taking on too much - Sage for example is a complicated piece of software and not that cheap.
You will need to consider storage for your products and the packaging, and then the implication of insurance etc. comes into play....!
Phone the HMRC, and ask them what they need you to do, I have and they are very helpful!
I also sought information from Business Link etc, very helpful and knowledgable.
Good luck! :rotfl:

duff67

On Bank Account question :-

Whilst not a necessity, I would recommend you do.

You mention "my existing one", which I therefore presume is a personal.

Whilst initially money can go in and out, from an accounting point of view it would be easier to keep personal and business transactions separate. This will help you or a future accountant from having to sift through your personal stmts each year to separate your business transactions.

Also should your business grow and records be needed eg Bank for lending, Tax office for proof - your not giving more info than you need.

Hope this helps

Chell

You don't need a proper business account, a seperate personal account will do.