Business Setup

Quiet_One

Hi me and a friend are in the process of starting our own management company we have a web site designed but we are unsure about tax...do we have to get VAT registered to start trading? Also are we required to register with companies house? What are the fisrt crucial things that we must do before we start offering our management service as a business? We ahaven't owned a business before so we are new to the whole process?

McAzrael

Firstly, are you setting up a company or partnership? There's a world of difference.

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805&r.lc=en&r.s=tl

If it's a company then Companies House needs to know. As soon as you expect to turnover £60000ish in VATable income you have to register for VAT. You can, if it suits, register below that threshold. If you are to be self employed you have three months to notify HMRC. If you are to be employers then you must register with HMRC.

You'll need insurance. If you are to be employers then you MUST have employers' liability insurance. It is normal and sensible to have public liability insureance (usually in a combined policy with the employers' liability and other insurances). If you are offering professional advice you should have professional indemnity insurance.

www.hmrc.gov.uk
www.companieshouse.gov.uk
www.berr.gov.uk

You'll also need cash, and more of it than you think.

slipp_digby

As an aside, you may want to draw up a shareholders or partnership agreement which sets out what happens to the business/shares etc in the event that the business doesnt work out.

Your local business link and an accountant will probably give you all the guidance which you require on company formation, VAT etc and HMRC have extensive guidance on emplyment and tax issues - see if you can get on a local seminar so you can ask questions of an advisor