DanUK started this topic @ 22:51 on 07/09/2005
Hello.
I hope I am not asking in the wrong place; but we are currently creating an Internet based Company dealing with Leased Line advice, Logo Design, full website design, Custom code and future Domain registration.
I have quite a few questions so I thought I'd list them below for ease of reading - thank you for your time.
1. Prior to Company registration, is it illegal to trade and sell products, i.e. website design and take payment for it?
2. Likewise, prior to Company registration is it not possible to have people working for the Company?
3. A registered office - can this be a residential address? I'm not 100% comfortable with my home address being visible on a site like CompaniesHouse.gov.uk as it's entirely Internet based... though I guess I don't have much choice on that???
4. To have someone working for a Company in the UK, do they have to be 16 or 18? I know in retail if they're 16 they can be employed, but they have to have a minimum of 8hrs break before any education.
5. What type of stuff do we need to do apart from send forms to Companies House. Will they ask stuff like profits and tax and stuff? I have no idea about this so any advice on this would be greatly appreciated.
There are more but I thought I'd just ask these for the time being.
Again, thank you for your time and hope to get a few replies. 
RE: New busiess information, advice needed!
James Smith | 08/09/2005 09:08 AM
Dan,
Before you form a limited company you will - by definition be trading as a sole trader. This is the "normal" thing to do whilst testing your business model. You don’t have to be a limited company to trade, or to employ people. You do however need to register a sole trade with the Inland Revenue, and also register for PAYE if you employ people other than business partners.
(3) Can be a different address, but not a PO box no. You will still need to display your trading address on your company correspondence and accounts so you cant "hide". If you aren’t doing anything dodgy you shouldn’t really worry about using a residential address this is quite normal.
4. I think you can employ people above 14. Not really my field.
5. This isn’t something you will be able to do yourself if you form a company. Your accountant will prepare your company accounts, submit your corporation tax return and deal with the other paperwork. There is a lot of it with a company.
Really at this planning stage ther first thing to consider is your structure - ie do you need to be a company right now? Or would a sole trader be the better (cheaper and easier to understand) option?
Have a look around for post on this topic as it has been covered quite a few times.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: New busiess information, advice needed!
DanUK | 08/09/2005 01:00 PM
Hi there. Thanks for the replies they're really appreciated!
So, just to clarify, if we wanted to postpone the registration for a little we would be fine to trade without the registration as long as we cannot those people mentioned above about payments and tax and stuff?
There is no legal requirement for us to be a registered limited company to have people working for us or to provide product solutions as noted above to the public?
Thanks so much for this info!
RE: New busiess information, advice needed!
Alan Channing | 08/09/2005 10:42 AM
3. A registered office - can this be a residential address?
AFAIAA if you are using your residence to run a business then there are council tax issues. In addition you need to check your rent or mortgage contract to check that there will be no problems there. Finally, check your house insurance too, it may only cover you if you are using it as a "residence" and not as an office.
RE: New busiess information, advice needed!
James Smith | 08/09/2005 10:57 AM
The previous respondent is a little wide of the mark here.
Although these issues may need to be considered when you work at home, the mere fact of using your home address as a registered office rather than a forwarding postal address will make no difference.
The payment of business rates (council tax for businesses) is not generally applicable so long as you don’t use any part of your home exclusively for business purposes. Most home insurances can be extended to cover “home office” equipment.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: New busiess information, advice needed!
James Smith | 08/09/2005 01:11 PM
You can trade as a sole trader/partnership. This is fundamentally different to trading as a limited company, and you really should take some time to understand the differences. Have a look at the main sections of this website, and also the government's business link website which explains about business structures. There are various legal, tax and regulatory differences between the two structures.
If you employ people you must operate a PAYE scheme, whether you are a limited company or a sole trader/partnership.
It sounds as if you are completely new to having a business, and you should therefore take lots of time researching all the implications. Also think about making an appointment with your local business link advisor - they offer free advice to start-ups, and it is far better to take proper advice upfront to ensure you are doing everything you are supposed to.
Regards,
------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
