Setting up a new, small joinery business UK

Jessiejane17

Hello, apologies if already asked but cannot find the exact information without trawling through Google (which I will also do) 

we are looking to set up a joinery / home improvement business, ran by 2 people with years of experience. A few questions: 
- Is it best to set up as a limited company as opposed to self employed (why?) 
- are there any grants from the government currently available for setting up a business? 

- would there need to be a “virtual” or specific address? (as this work wont be in an office) 

appreciate any advice, thanks! 

Savvy_Sue

It depends.

Very few to none.

Some of us dislike dealing with an online only presence, not least because if we need to sue, we need a physical address.


Becoming hopefully a little more helpful, you've got various options,and the two of you need to work out what would suit you, taking advice as you need it.

You could be sole traders, trading as J&J - so all the quotes and invoices come from Jane or Jessie, t/a J&J, but either of you might do a particular job.

Or you could set up a formal partnership, where you agree how you're dividing the work and the profits. It's a little more complex: you'll need 3 tax returns, 1 for each of you and 1 for the partnership.

Or you could set up a limited company. That way the Ltd Co has its own separate existence. An accountant would be strongly advised. KO

However you decide to trade, you'd be well advised to have a legal agreement covering how you'll do things. What if one of you is ill? One of you wants out of the arrangement? And just extrapolating from the username, what if you both get pregnant at the same time?

And one basic question, do your years of experience cover touting for business, giving quotes, raising invoices and getting paid? 

DullGreyGuy

Jessiejane17 said:

we are looking to set up a joinery / home improvement business, ran by 2 people with years of experience. A few questions: 
- Is it best to set up as a limited company as opposed to self employed (why?) 
- are there any grants from the government currently available for setting up a business? 

- would there need to be a “virtual” or specific address? (as this work wont be in an office) 

appreciate any advice, thanks! 

"Best" will depend on your definition. there are inevitably pros and cons of being a sole trader, partnership or LTD and so it really depends on you priorities, how you want it to function, how much profits you're anticipating etc. 

I'd guess most would start with a traditional partnership and incorporate further down the line if it becomes successful but some will want the legal protection that a LTD represents from the outset. 

There are 125 business schemes on the governmental website, though many of those are just advice or loans rather than grants, but many are very specific as to who's eligible for them. This is something you are going to have to do your home work on but most businesses won't be eligible for a free grant.

You will have to have an address that the business is contactable on for paperwork. Depending on your structure it may be a single address or one for each of you. It's purely your choice if you pay for an alternative address or just use your home address which is the trading address for our company. You may need to check any restrictions on mortgages, leases and/or tenancy agreements on using your home address for business. Given the business isn't going to have a physical address somewhere you'll also need to consider where you are going to store tools and materials and its potential impact on things like home insurance.