Starting a cleaning business

yesness

Hi all, I'm sure you have come across this idea many many many times, but here goes again....

My sister and I have been cleaners pretty much all of our working lives. She has just been made redundant and we are looking to go out on our own. I'm aware there are lots of small cleaning companies and big companies therefore lots of competition... however due to her contacts we should be able to get a couple of good contracts to get us started- initally looking at end of tennacy cleans.

OK, questions: Do we have to form a company if we want to do this together? Or can we both register as self employed? Also what are the implications if I already have a part time job?- I wouldn't want to leave this just yet!

I have many more questions but would really appreciate any advice you can give on these for now

Many thanks and Merry Christmas!

Savvy_Sue

yesness wrote: »

OK, questions: Do we have to form a company if we want to do this together? Or can we both register as self employed?

there is a 3rd option which is between the two in terms of complexity, I believe, and that's a partnership. that might suit you, but as I'm no expert I won't attempt to explain how why etc! TAKE A LOOK AT BUSINESSLINK SITE (sorry, see sig) and then maybe phone a couple of accountants for some advice.

1 thing about partnerships is that it's advised NOT to do an equal split, partly because you need to avoid the possibility of deadlock. given what you say below, sis could be majority partner.

yesness wrote: »

Also what are the implications if I already have a part time job?- I wouldn't want to leave this just yet!

not a problem. you continue to pay tax / NI in that job, and do a self assessment for your other earnings, whether registered as self/e or some other system. possibly more complicated initially if you are formally employed by the new 'entity', but HMRC will advise.