Help setting up a online mail order business from home.
milly_b83 started this topic @ 09:42 on 26/02/2009
I need help understanding some jargon to starting a small mail order business at home. I will be the only person in the business.
I want to buy baby clothes from suppliers and then sale them through an online mail order service in the UK. Sounds simple enough…but how do I get started. I don’t want to waste money on unnecessary services and filling in unnecessary forms.
I work nights and will be keeping my job to fund this project, so don’t need a business loan. Do I need to be registered as self employed if I’m still working with my present company?
Do I need to be registered as private ltd company or just be a sole trader? I spoke with Companies House and they didn’t seem very sure? I’ve been in contact with suppliers and they state they need a company registration number and VAT ID number to supply me with there goods.
Do I need to register for VAT ID number? As there’s no VAT on children’s clothes in the UK, why do the suppliers need this info? I don’t except to make over 67,000 profits in the first year.
Is there anything else I need to apply for to or do? The last thing I want to receive is a fee/bills because I missed something out.(I know I need business insurance).
Sorry if I sound silly, but all I have is the idea and how to make it work, I just need help getting it set up.
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RE: Help setting up a online mail order business from home.
Scarthingwell Replicas | 26/02/2009 04:53 PM
You need to register within three months of starting with hmrc as self employed, even though you still have a job - you can be both. Look at hmrc website for loads more advice. You dont need to register for VAT or as a limited company to start. You will need to keep records of all incoming and outgoings etc. To buy from wholesalers who want proof of business may mean visiting them and paying cash and showing some proof you are seriously starting a business. Letterhead, business bank account or other stuff. Also lots of wholesalers don't like ebayers if you say you sell through the web they might want to see your site.
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RE: Help setting up a online mail order business from home.
Alex1983 | 27/02/2009 12:15 AM
Some suppliers will intially want to see a company number, however you should be able to work around this after a phone call with the supplier. Discuss with them your needs and your business, there's no point in dealing with certain suppliers who play pinball with small start ups. If you want more info on the last comment email me.
Are you selling on ebay? or are you looking to develop your own site? Ebay is excellent for promotion of your own website..
VAT won't apply until you reach 64K sales turnover..
How many other ebay traders (if any) do your suppliers supply? Look for a slight different sales angle to make it work right from the start.
Alex.mullholland@hotmail.co.uk
RE: Help setting up a online mail order business from home.
clairejarrett | 27/02/2009 09:15 PM
Hiya
Yes you will need to register as self employed even though you are already employed, and you will have to submit a tax return. You won't be eligible for VAT unless you sell around £64,000 in goods - not profit, but actual sales value.
If suppliers say they need a registration number then yes, you need to go limited, you can search Google for company formation agents and get one set up for £35 within 24 hours.
How will you get the sales, you say online mail order, do you have the site created as a poor site will instantly lead to absolutely no sales and money down the drain? It's worth looking around for web designers that specialise in ecommerce? When you have the site you need targeted traffic delivered to it, people will not arrive automatically. You have a choice between SEO and Pay Per Click, ideally both.
Good luck, and let us know how you get on!
Claire
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