Start up new business

martindow

Jayy01 said:

I have asked him to look at his contract and there is a clause which states that he is not allowed without permission to be involved, be a director, or work in another business. 

He is keen in helping me regardless of this clause and says the worst that can happen is he loses his job but then he could support me full time.

This worries me because i will be at start up stage where as he is part of a well established corporation. Also i feel his company could also take legal action if he breaks employment contract clause or is this me being paranoid now? 

In his position, I would contact HR and have a discussion before he does anything.  If he loses his job he would have a poor or no reference and a gap in his employment that could make it difficult to get a job in the future.

 As you say, you have no idea of how quickly you can build up your company or if it will prove to be a success.  We all want to help members of our family but this could be very damaging financially.

Jayy01

Thanks for the advice. 

I am now thinking about bank accounts. Is it ok to have a personal account for my business whilst i start up or is a business bank account required. I have noticed nearly all business bank accounts have a monthly fee to maintain.

Are there any banks you would recommend? 

J_B

Jayy01 said:

Thanks for the advice. 

I am now thinking about bank accounts. Is it ok to have a personal account for my business whilst i start up or is a business bank account required.

https://forums.moneysavingexpert.com/discussion/6287461/do-i-need-a-business-bank-account

Jayy01 said:

 I have noticed nearly all business bank accounts have a monthly fee to maintain.

Are there any banks you would recommend? 

We use Starling for our Ltd Co

They don't charge a fee

Pennywise

Jayy01 said:

Thanks for the advice. 

I am now thinking about bank accounts. Is it ok to have a personal account for my business whilst i start up or is a business bank account required. I have noticed nearly all business bank accounts have a monthly fee to maintain.

Are there any banks you would recommend? 

You'll have lots of charges for different things as a business.  Trying to get things for free isn't really very professional and most "free" things aren't as good as the things you pay for, meaning potentially less efficiency, wasted time, etc.

You also need to think about book-keeping software.  Some banks have discounted or free software attached, so whilst there "may" be bank charges, it may be cheaper than a book-keeping software subscription.  Eg. Natwest business accounts give you a free subscription to freeagent software (and Mettle, a NatWest online only account is free and you still get the free freegagent subscription).

You have to think what facilities you want from the bank. I.e. will you need an overdraft or loan?  Will you need to receive or pay money in a foreign currency?  Is an online only bank suitable or will you need to ever visit a physical branch?

Having said all that, nothing to stop you using a personal bank account if you're a sole trader (except the bank's T&Cs will prohibit it but most banks don't care/notice as long as transaction volume is low).  But if you're going to set up a limited company, a company bank account is virtually essential to avoid tax problems of using a personal account for a limited company!  Whatever way, what's important is to keep business and private transactions separate, so if you're a sole trader and going to use a personal bank account, at least have 2 accounts, one for business and one for private.

J_B

Pennywise said:

You'll have lots of charges for different things as a business.  Trying to get things for free isn't really very professional and most "free" things aren't as good as the things you pay for, meaning potentially less efficiency, wasted time, etc.

Can't say I agree with you - Starling is free and does everything our Ltd Co needs to do.

Pennywise

J_B said:

Pennywise said:

You'll have lots of charges for different things as a business.  Trying to get things for free isn't really very professional and most "free" things aren't as good as the things you pay for, meaning potentially less efficiency, wasted time, etc.

Can't say I agree with you - Starling is free and does everything our Ltd Co needs to do.

If all you want is a simple bank, then it's fine.  Trouble is, that down the line, what I've found with clients, is that they come unstuck when they need something that's not simple, i.e. trying to bank a cheque, or a customer paying in dollars/euros, or, as we found with covid, some banks weren't offering the covid bounce back loan schemes.  If all you'll ever need is simple banking, then fill your boots with a freebie bank offering the basics.  But you have to be aware that sometimes things aren't always simple.

J_B

Pennywise said:

J_B said:

Pennywise said:

You'll have lots of charges for different things as a business.  Trying to get things for free isn't really very professional and most "free" things aren't as good as the things you pay for, meaning potentially less efficiency, wasted time, etc.

Can't say I agree with you - Starling is free and does everything our Ltd Co needs to do.

If all you want is a simple bank, then it's fine.  Trouble is, that down the line, what I've found with clients, is that they come unstuck when they need something that's not simple, i.e. trying to bank a cheque, or a customer paying in dollars/euros, or, as we found with covid, some banks weren't offering the covid bounce back loan schemes.  If all you'll ever need is simple banking, then fill your boots with a freebie bank offering the basics.  But you have to be aware that sometimes things aren't always simple.

All good advice but, we do have a bounce-back loan and have never been paid in non-sterling or with a cheque. (Can you use the post office to pay in a Starling cheque??)