Very small startup, confused!

SaltySeaman

Hi all,

I guess startup might be the wrong word, but either way, would love some guidance from you all!

I started a forum site in 2010. It's in a niche and has grown fast. It's for aspiring, current and past trainees in a certain industry. The official industry trade association has recognised us and recommended us to supplement its own careers marketing.

We make a modest income from Google ads. About £30 per month, which is poor for our pageviews simply because Google draws a blank when it comes to matching ads to our content. However we are exploring the possibilities of charging employers/equipment suppliers etc for advertising to fund ongoing expansion. We are also looking at a paid member facility.

Our expenses are low, about £100 per year all in for hosting/domain, plus the costs of the forum software and design (over £200 this past year). We are a bit choked with our current hosting, and are looking at a move to a dedicated server. Our current hosting company can set us up on one for £30 per month.

Now, it's all been a personal endeavour so far so income from ads and affiliate schemes has gone into my own account, and expenses have come out. But I'm looking now to seperate the finances. The question is, what's the best way to take this forward? What implications does it have on my tax affairs? What's the best way to structure the business given the current low turnover but potential for increases?

Sorry if that's a bit scatter-brained but any assistance welcome!

InsideInsurance

You could have a session with an accountant to talk about your options, most will do a free initial consultation.

Unless there is a particular reason to want set up a limited company it sounds like continuing as a sole trader will probably be your best route as if there are any tax efficiencies of a Ltd these would probably currently be eaten up by the cost/effort that the extra paperwork of an Ltd creates.

Given your site already exists and your already spending/ receiving income it isnt really a startup anymore

Mistral001

The tax issue is an non-issue. You are unlikely to be making a profit when you take into account your expenses of use of home and computer etc. So what is there to pay tax on?

Separate your finances if you want to, but there is no economic or tax reason for doing so at the minute as far as I can see.