is it worth doing?

pjs_3

Myself and my friend make our own rubber stamps for making our own cards. We tried a few on ebay and they have sold really well although we only make about 60p profit on each one after P&P costs and costs to make. i make about 4.00 profit per month on my cards selling to friends and family. We only have time to make a few stamps and cards each month as we both have part time jobs and young children to look after. As we are making a profit on these items we have to register as self employed. I understand that we wont have to pay NI as the earnings will be low. What else do I need to know about small businesses and is it going to cost more to run than we make?
Think we made need product and public liability insurance (may sell at fetes along with my cards)?

Would I need a separate business ebay account? Or can i use my personal one?

Do I have to have a business bank account?

I really dont want a big company just enjoy making the cards and stamps, but if we will be out of pocket then its not worth it.

Astaroth

There is most likely no legal requirement for you to have insurance though some places (like markets or fates) will require it as part of their contract for your stall. That said and done though if you dont have insurance and someone did sustain losses (either to property or personal injury) then you will have to cover the cost of defending the claim and paying them if they win. If you are a sole trader or a partnership then it is you personally that would have to pay as you and your company are legally the same entity. If you form a limited company then it is only the company itself that pays.

Are you talking about an ebay account or bank account? For ebay it is less important I would imagine but people looking at your feedback and seeing your "company" buying womens underwear or DVDs may not consider your company too professional but I think this is a minor consideration. For bank accounts it is always sensible to have your and your companies money separate and can be a major headache if you dont do this when it comes to doing tax returns etc.

pjs_3

thnak you replying thought no one was going to. Im gonna give it a go. think I will stick to the one ebay account as I dont sell much of my own stuff anyway. I am looking into the cheapeast insurance. Have found market traders one which cover public liabilty and product.

A friend suggested we open a normal joint account (only taking cash and cheques anyway) rather than a business with fees. Is this legal?

Astaroth

You need to check the terms and conditions of the account to see if it can be used for business purposes. The Abbey or Nationwide (cant remember which off hand) do a fee free business account - it isnt truly fee free however it does have high enough limits before fees become payable and so may be worth a look at.

pjs_3

Thankyou. will check both of those out, thats very helpful.

FerociousDave

Re: Bank account, is it this one?

http://www.anbusiness.com/

FerociousDave

Re: Bank account, is it this one?

http://www.anbusiness.com/

http://www.anbusiness.com/business_account/bank_account_benefits_banking_with_us.shtml