Help - little bit scared!! registering a company & bank accounts

[beepbeep]

A friend and I are looking at setting up a small catering business (mostly cakes and cupcakes aimed at weddings, christenings, corporate etc). We have not advertised yet but already have quite a few orders.

What I'm wanting to know is;

1. do we HAVE to register the company? The local council are aware of us as we have had relevant hygiene check. We are not taking a wage and at the moment the income from the business is pretty small. We both work part time in other jobs (which we'd love to give up if business takes off)

1. what does registering the business involve and what are the consequences of doing it?

1. We require a bank account, but am I right in thinking that we cannot open an account with the business name unless it is a business account and for that we need to be a registered company?

1. Website, approx how much would you expect to pay for someone to design a website (no shopping online, just information) with multiple pages, contact/query page & quite a few photo images? Would ideally like them to manage the website too!

Thanks for your time in reading this, any advice is much appreciated.

Afaik, you have to inform hmrc within three months of setting up, whether you are really making money or not - if you are advertising as a business, then you have set up.

Consequences are, you will be expected to complete a tax return next year.

I have so far avoided a bank account in the business name, but am about to open one, so will watch wi interest to see if you have to be a company. I was not aware of that if you do.

Website - we did our own on iWeb on an Apple computer and imo it's a good website. Have been quoted about £400 -£500 for a semi busy website, but you can get basic ones for free yourself - it just depends how unique you want it to be and professional.

1. I don't know your specific circumstances but you are probably better off trading as a partnership to start with, that way if the business makes a loss you can offset against your other income to save some tax. You can always transfer the business to a limited company at a later date.

1. You need to register with HMRC by completing form CWF1. You will each need to complete a tax return each year and also a partnership tax return each year (if you decide to trade as a partnership).

1. You can open a business bank account with the business name, its doesn't have to be a registered company to do this, except you can't add the word 'limited' to the business name unless its a limited company.

1. No idea sorry

you do not need to become a company at the outset
have a read through the page I wrote for ebayers here
cgi3.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace
and I would suggest a chat with an accountant - it will save you a lot in the long run

For your partnership which it is probably best for you, open a bank account with RBS direct business banking, it costs nothing for cheques, BACS, payments and can all be done online or by phone, I haven't paid a penny in bank charges and have been very happy with the service.

But I don't require overdraft, all the info for this is on their website so check if it is suitable for you.

We have some pretty major clients and has never been a problem that we are not a company but a partnership.

Not sure about cash payments as I don't take any cash.
Have a legal partnership agreement drawn up which is not expensive but you may need to show banks/clients

Notify HMRC

For your website I can recommend somebody so send me a message if you want but they wouldn't be a webmaster which is what you seem to imply you are wanting. It wouldn't be hard to look after your own site once it was up and running.

Good luck

sorry should have added that you don't have to register a business per se
As a catering business you seem to have had your relevant checks which is what you need for your specific business.
Just make sure that the paperwork you need for catering is all up to date.

Highriggs - might be a silly question but how do you pay in cheques with the rbs direct banking? I see you'd have to send cash by post, but doesn't say about cheques.

Greedy, I was thinking same thing. We don't have an RBS local to us, but their bank account looks good. Also we have a mac so will give the website a go. Have already done a 'holding' page with iweb and think it looks good.

Thanks everyone for your comments, all very helpful.

Sorry just got back to this, they send me pre-paid envelopes and a pay in book.

I don't get cash in, just cheques or bacs payments but I think that they charge for cash payments if by post but as they are part of Nat West I think it might be possible to put cash in there.

I also have business credit card with them which I pay a small amount every 2 years I think but can also be managed online. I have debit cards as well and can withdraw cash as needed.
I also have a business savings account on the same basis and the current account money is swept into the savings account every night automatically and get a small amount of interest.

The payment I make for credit card is tax deductible. I think it is

I don't need business advice from them (!) and don't need overdraft so it might not suit everybody

You can give them a call and ask as they are good to speak with.