SB: Small Business Start Up Discussion

Mahmood_Reza

Hi Trixietoes,
General options & considerations include: Option (a) Ltd co = managing agent, charges commercial rate for its services. Considerations: get contract drawn up between co+you; Option (b) Transfer property to company and company is the direct recipient of any financial benefits; Considerations, many, I will mention some. Transfer of property = disposal for CGT purposes, stamp duty charge potential and mortgage may have to be re-arranged. Tax: Tax payable on property gains are less when the property is owned by an individual, approx £40,000 if owned by one individual, £80,000 is owned by two. In addition you have the 'problem' of taking the money out of the company, where additional taxes may be levied - dependant on a number of variables.
If you intend to trade in the properties, i.e. buying and selling then as individuals you will be subject to income tax up to 40%, min 21% via a company (you still have to take the money out, see above).
Option(c) company acquires additional properties using proceeds of house sales as deposits/funds. Considerations funds lent to the company = directors loans, personal indebtedness may increase
NB: if properties are to be owned as investment properties (long term) then there are less tax reliefs if they are residential properties and owned by a company.
Hope this is of some use

jill_b29

Hi all,

Hope I am in the right place. I am really just asking for a bit of advice. I am setting up a business making stationery cards/invites etc.

I also work full time, and this is really just to bring in a bit of extra income as I am getting married next year and need the funds!

What do I need to do legally? Do I need to tell my current employees/the tax man etc??

Many thanks

Jill

Savvy_Sue

You need to tell your employer IF your written statement of terms and conditions says you do. I can't see that any reasonable employer would object, but the clause is there to prevent you taking clients away in your 'spare time', or to prevent you being overtired, or to avoid any conflict of interest.

You need to tell HMRC and register as self employed. If your earnings for self-employment are going to be low, then you can ask for an Exemption Certificate so that you don't have to pay s/e NI, otherwise they'll want a DD set up for that. They will send a self assessment form so that you can work out how much tax you'll have to pay: set aside 25% of your profit to cover this.

You would probably find the Businesslink site helpful in terms of actually setting up a new business.

jill_b29

Thanks Savvy_Sue thats a great help!!

Jill

rogercossey

Lots of very good advice and in my opinion anyone can 'go it alone' by starting their own business. The acid test of whether they succeed with come down to if they are prepared to put in the necessary work. Being self employed is not the easy option and you will end up working harder, doing more hours for often less money - at least in the first few years. Do not give up just because the going gets tough!

Mahmood_Reza

Apart form the hard work you need a clear focused idea of what you are trying to achieve, and an outline of how you expect to achieve it. Think about what your critical success factors are and ensure that these are achieved, believe in what you are doing becasue if you don't it will come across to your customers. Being under resourced, in terms of skills, time, capacity, experience, cash and poor management are the common challenges that are faced.

jpglambert

I've recently joined the forum and in the process of setting up a small business so I am finding all this interesting reading. Does anyone have any tips or process for registering a company?

JAYk_2

jpglambert wrote: »

I've recently joined the forum and in the process of setting up a small business so I am finding all this interesting reading. Does anyone have any tips or process for registering a company?

Do you want to set up as a Sole Trader or Limited company?

ILoveChocolate

Hi Everyone,

I am looking to set up a cleaning company, can I have the name company if I am not a company.

i.e the ABC cleaning company, I am not sure if you can used the name company if you are an indivdual but thought have the name company in the title would be good if allowed. Many thanks.

Premier_2

ILoveChocolate wrote: »

Hi Everyone,

I am looking to set up a cleaning company, can I have the name company if I am not a company.

i.e the ABC cleaning company, I am not sure if you can used the name company if you are an indivdual but thought have the name company in the title would be good if allowed. Many thanks.

The restricted terms withinin business names is essentially covered by the following legislation:

Companies Act 2006 (sections 1200-1208)
The Company and Business Names (Miscellaneous) Regulations 2009.
The Company and Business Names (Sensitive Words and Expressions) Regulations 2009.