Starting new business. A few questions(9 Posts)
I've started a new businesses. Previously I have always just worked freelance self employed as a decorative artist. Now I know so many people in my field I want to create a company that offers all sorts of services within my field (decorative arts). Then I can get work for all the contacts I have and earn some on top for getting them the work. I am generally good at getting work (not so good at DOING the work) so i figured I'm better suited to running around getting the work then lining up the right people to do the jobs.
So I have built a website and have images of all the types of work we can offer. I have a agreement written up by my lawyer mate that I can sign with all the people I'm getting work for to say we're all agrred on the terms etc. . I am ok at promotion etc.
My questions are- Now that I've plucked a cool sounding name out of thin air and built a website and got quite a few people willing for me to get them work, and got enquires for work, what else do i need to do?
Do I need to register as a company? Do I need to register the name and logo as a trade mark? What are the implications of all this? I previously just called myself by my own name and got myself work. Now that I have an umbrella name for all these craftspeople and I'm mainly getting them work do I have to be a company? Does that mean i need a business account? Why not carry on with my own bank account? Does it change what i have to do re tax every year? What have I got myself into??
Any advice or advice on where to get advice very welcome!
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Just as an aside, some banks like HSBC offer free business banking to small companies. Keeping all your business transactions separate - especially if there may be a few - from your personal account makes sense.
You don't need a business account if you're a sole trader but it does make things much easier if you run a separate current account.
What about insurance? Public liability type as a minimum. Then car insurance variation if its now a work vehicle too.
I just opened a separate personal current account which I use for only business transactions. It has no fees, but gains no interest either, it keeps my finances separate from those of the company.
You should register as self employed so you keep a full NI record, HMRC do free web-based seminars to talk you through your tax and expenses.
Thank you for all that. Does anyone know the advantages of setting it up as a company?
And any sources of free start up advice for new bushiness?
Do you have to be VAT registered if you're a company?
Limiting your liability is the big advantage. For some industries this is almost essential.
Business link used to be good now replaced by gov.uk as an info starting point.
Nope you don't need to register for vat if your turnover is below a certain amount (exact amounts on HMRC website). The advantage of not registering is you then don't have to charge vat on your services and so can appear cheaper if you're selling to people rather than businesses (who tend to invoice excl. vat anyway)
You only have to be VAT registered if you're earning over £70k as a company. I used an online accountant to help me set up and do the paperwork for me. You can also reclaim Vat on purchases you make if you're a registered VAT company - whether this works for you or not depends on how much you buy!
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