Starting Ebay shop - Contacting 1st potential supplier - Legal/TAX? - Advice Pls

property.advert

You can have anything you want before the @yourcompanyname.com or @yourcompanyname.co.uk e.g info@yourcompanyname.com and Charles@yourcompanyname.com or sales@yourcompanyname.com etc. You simply set up the prefixes after you buy the https://www.yourcompanyname.com domain

You don't have or need references. You are not applying for credit.

When using a virtual office address, it is key to know how much post you will receive, how quickly they send it to you and how much they charge for it.

I use http://www.companiesmadesimple.com/ and http://www.thisisyouroffice.com/home/ from the same company. I've used them for years and their complete package cannot (as yet) be beat.

One reason I like https://www.godaddy.com/ is the seamless integration with Google Apps, which can run your email for free from sales@yourcompanyname.com, john@yourcompanyname.com etc.

After setting it up, go to the Apps here https://www.google.com/a/cpanel/standard/new3

property.advert

Remember that Godaddy has permanent promotions with circa 30% off via codes available on the net. Even sign up for their newsletter and they will send you some.

noz85

property.advert - just tell me where to send your the cheque!! You're advice and information has been extremely helpful. Thank you very much.

I'm sure more questions will crop up I'm afraid..

property.advert

noz85 wrote: »

property.advert - just tell me where to send your the cheque!! You're advice and information has been extremely helpful. Thank you very much.

I'm sure more questions will crop up I'm afraid..

No worries, that is what the forums are for. Others will have a different idea and one size does not fit all. I find that spending a bit of time assessing options is always worthwhile. Do your homework up front and you can concentrate on the business of business.

psycrow57

Just thought you might be having s bit of confusion about VAT and tax - maybe I read it incorrectly, but just wanted to make sure you're aware that registering as self-employed and registering for VAT are two separate things. With a small business, you really don't need to worry about VAT - I won't register until my earnings mean I have to!

I got all my wholesalers by being honest and saying I'm a small sole trader just setting up, home address etc - but I did have a functioning site and email before I applied.

Good luck

heretolearn_2

Just a quick word about your structure - some of the above posters are recommending you set up a Ltd company. I would NOT recommend this at all. there are no real tax advantages at your level of operation and an awful lot more reporting to be done. For example, it's all very well for someone to say 'do your own accounts' but if you are a Limited company you have to be able to prepare proper financial statements that comply with the Companies Act. This isn't something you can just pick up as you go along. Plus a company tax return, plus understand how directors salaries, dividends and bonuses work to take the money out of the company, how to handle the directors loan account legally and so on.

Seriously, stick with sole trader. For that all you have to do is register with HMRC as self employed and do a self assessment tax return once a year, which is within the reach of any reasonably astute person without accountancy training. Although once you get to a decent income an accountant should save you more in tax than their fee.

Savvy_Sue

You've already have some good answers, so I'll concentrate on a few of your questions which might need a bit more thought / input.

noz85 wrote: »

The first supplier I am looking to approach is D'addario UK.
Here is a link to their online account application form if you might care to take a look?
http://www.daddario.co.uk/downloads....id=19&catid=10

Bear in mind that most suppliers will have a 'one size fits all' application form for opening an account. In similar situations, I've found that suppliers are much more flexible if you don't want a credit account - they won't want to references, they won't want your VAT number, they won't want your inside leg measurement IF you're paying up front! So yes, phone them and ask what they would actually want in your situation. And I'd phone rather than email, and while all those other things do require some thought, they're not essential.

noz85 wrote: »

1st - I'm not 100% sure how to fully complete the application form. As the shop would be basically ran from my house via ebay, the trading address would be my home address correct?

One thing you do need to think about is where you're having your deliveries made: the trading address is wherever people can get in touch with you in writing, and you might have a different delivery address, BUT whatever that delivery address is, it needs to have someone there to receive parcels! so do give that a bit of thought ...

noz85 wrote: »

Do I need to worry about registering the company at this stage when things are so small?

noz85 wrote: »

I am employed full time and therefore pay my PAYE taxes. I know there are quite a few threads in this section about TAX, but I'm not sure how it would apply to me. As this would start out as a bit of a hobby, only turning over small amounts. £200-£300 profit a month AT BEST, would I need to worry about the TAX side of things? I think it's probably best that I contact the TAX office and find out the caps etc and when it would affect me.

You do need to register as self employed with HMRC as soon as you start trading. And while you think of £2-300 as being 'at best' your monthly profit, that's £2-300 on which you'll need to pay at least 20% tax and extra NI contributions. Start getting your head round what's involved there: don't wait until you realise you should have registered a year ago and you're in deep doodah.

noz85 wrote: »

Also, would it be beneficial to attached a sort of 'business plan' with any application?

To a supplier? I don't think so. However, preparing one would be a very good discipline!

BTW, does your current employer have anything in your contract about doing other work? does your landlord / mortgage provider have anything to say about running a business from home? have you thought about insurance? And so on ...