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General => General discussion => Topic started by: golf-sib on 27 March 2012, 22:38

Title: Starting a business
Post by: golf-sib on 27 March 2012, 22:38
I know some of you on here have business's and I been thinking for a while to start a business with my nephew. How ever I am somewhat clueless to the whole idea.

We have a rough plan and we already have a business name idea's. The idea of the business is to do it in our spare time as we both have full time jobs but during our jobs we both have free time and obviously are willing to have our free time consumed outside work as well. We've had some interest already and some work requested. My query's are:

How do I go about registering the name and checking availability?
I can't be a sole trader as there's two of us working, so what are the other options/recommendations?
How would taxing work out with current jobs in place?
Whats the best way of writing up a contract and negotiating terms with clients?

Basically the company is to do with website development and other web media. Any general advice is also appreciated, as its very early stages of thought. I am registered on business link and have had a small read, plus I've started reading "starting a business for dummies". The risk of business is low as its in our own  time and startup costs are 0. He is a full time web designer himself.
Title: Re: Starting a business
Post by: Mr Blue on 27 March 2012, 22:45
Cash in hand ftw  :tongue:
Title: Re: Starting a business
Post by: golf-sib on 27 March 2012, 22:48
Cash in hand ftw  :tongue:

I wish, its a case of if we are paid by another company and HM revenue see their books and see us, its not worth it in my eyes as you will probably get more for tax evasion then rape  :grin:
Title: Re: Starting a business
Post by: Jay on 27 March 2012, 22:48
First check that your current employer has put nothing in the contract about having a second job  :wink:
Title: Re: Starting a business
Post by: golf-sib on 27 March 2012, 22:50
First check that your current employer has put nothing in the contract about having a second job  :wink:

Checked that on my side, I'm clear to go. Will have to check his though.
Title: Re: Starting a business
Post by: jv on 27 March 2012, 22:57
HMRC website has muchos help.

PAYE in your current jobs? Can still be self employed for other work. Tax carries on as is for your current job. Class2 NIC for your self employed stuff, income tax to be paid later via self assessment.

Registering a name is of no relevance if you are self employed.

Loads of stuff to help, local business link etc :)
Title: Re: Starting a business
Post by: golf-sib on 27 March 2012, 23:11
HMRC website has muchos help.

PAYE in your current jobs? Can still be self employed for other work. Tax carries on as is for your current job. Class2 NIC for your self employed stuff, income tax to be paid later via self assessment.

Registering a name is of no relevance if you are self employed.

Loads of stuff to help, local business link etc :)

Is there any local free advice centres regarding business as a long call or a face to face meet with an advisor would be brilliant?

Would it still be classed as self employed if it was a company and two of you where working together.

Then there's a question of when do I look at bank account for the business.

To vat register or not?

Finding a good accountant?

Millions of questions and I'm finding small amounts of answers at the moment, I do realize I need to thoroughly research it more.
Title: Re: Starting a business
Post by: jv on 27 March 2012, 23:38
It's all out there for you, do some reading http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805&furlname=startingup&furlparam=startingup

http://www.hmrc.gov.uk/startingup/index.htm

You don't need a business bank account, though with two of you it's probably easier.

You don't need to be vat registered.

There is so much out there to read!

http://www.events.businesslink.gov.uk/
Title: Re: Starting a business
Post by: The Mighty Elvi on 28 March 2012, 07:22
http://www.smallbusiness.co.uk/

A good website for information.

Go to Companies House and check that your company name is available.

http://wck2.companieshouse.gov.uk/b7e1db21e4c5abe4aeb43ad17bf24118/wcframe?name=accessCompanyInfo


If you don't want to get a Limited Company you can become a Partnership.

Title: Re: Starting a business
Post by: JulesS3 on 28 March 2012, 09:58
A lot of people doing website creation at the moment, i looked at it and the market is saturated with companies doing this, free web templates (that just keep getting better) and everyone ripping off everyone else's code for quick money. I did it for a while for friends and made a bit of money but i found it just wasnt worth the time i was investing.

Good luck with it though, if you get it right and do well there is a lot of money in it.  :smiley:
Title: Re: Starting a business
Post by: Kerrse on 28 March 2012, 10:21
A lot of people doing website creation at the moment, i looked at it and the market is saturated with companies doing this, free web templates (that just keep getting better) and everyone ripping off everyone else's code for quick money. I did it for a while for friends and made a bit of money but i found it just wasnt worth the time i was investing.

Good luck with it though, if you get it right and do well there is a lot of money in it.  :smiley:

My brother & sister have been sucessfully doing it for years but their code is very well protected so much so when Vodaphone tried to steal it after they had done work for them they got a rather large lump sump in compensation :grin:
Title: Re: Starting a business
Post by: golf-sib on 28 March 2012, 11:19
Website design can be good money, we have had a few people interested with some good money we have a client already, just a case of setting it up. It's a mixture of things as some of it will be business solutions such as a login page for employees to check what time there shifts are and keeping up with time sheets and schedules etc... especially with businesses wanting to go green.

Looking at company structure it looks like limited is the way we will go. Just there's a few things left.

1) Do we need an accountant, if not how do the books need to be kept
2) Drafting a good contract for clients to cover ourselves, will need to get advice on contracts, not sure where?
3) Business insurance, where to shop around?
4) We have a job on our hands, if we where to get paid for it would it be better to open a business bank account and have the money in there for the time being whilst we sort everything in the 3month gap, or would it be fine in a personal account, I know HM can get funny.
Title: Re: Starting a business
Post by: Kerrse on 28 March 2012, 11:31

1) Do we need an accountant, if not how do the books need to be kept
2) Drafting a good contract for clients to cover ourselves, will need to get advice on contracts, not sure where?
3) Business insurance, where to shop around?
4) We have a job on our hands, if we where to get paid for it would it be better to open a business bank account and have the money in there for the time being whilst we sort everything in the 3month gap, or would it be fine in a personal account, I know HM can get funny.

Learn to do your own books then just have them polished by an accountant will be a lot cheaper

Business lawyer for the type of work you are doing it needs to be watertight !

You said it " shop around "

Business account makes more sense plus keeps everything seperate, no confusion

Title: Re: Starting a business
Post by: JulesS3 on 28 March 2012, 11:48
A lot of people doing website creation at the moment, i looked at it and the market is saturated with companies doing this, free web templates (that just keep getting better) and everyone ripping off everyone else's code for quick money. I did it for a while for friends and made a bit of money but i found it just wasnt worth the time i was investing.

Good luck with it though, if you get it right and do well there is a lot of money in it.  :smiley:

My brother & sister have been sucessfully doing it for years but their code is very well protected so much so when Vodaphone tried to steal it after they had done work for them they got a rather large lump sump in compensation :grin:

 :laugh:
Title: Re: Starting a business
Post by: golf-sib on 28 March 2012, 12:08
Sounds good, thanks kersse.

My final question is, as its more of a hobby than a full time job, the money will go into the business account and no wages/salary will be paid until it does become more full time.

With a limited company you are tax free if incomings are less than 10k for the year. Obviously books will need to be kept still, but is this common practice as I can't seem to find any information regarding the scenario I'm describing, let alone if any taxations still occur?

Also how do things work out when buying additional equipment with the companies money for business use and business phone contracts? And other outgoing like insurance.

You guys have been a lot of help and I can't thank you's enough!
Title: Re: Starting a business
Post by: Kerrse on 28 March 2012, 12:14
Sounds good, thanks kersse.

My final question is, as its more of a hobby than a full time job, the money will go into the business account and no wages/salary will be paid until it does become more full time.

With a limited company you are tax free if incomings are less than 10k for the year. Obviously books will need to be kept still, but is this common practice as I can't seem to find any information regarding the scenario I'm describing, let alone if any taxations still occur?

Also how do things work out when buying additional equipment with the companies money for business use and business phone contracts?

You guys have been a lot of help and I can't thank you's enough!

http://www.talktalk.co.uk/business-news/features/limited_company.html (http://www.talktalk.co.uk/business-news/features/limited_company.html)

Title: Re: Starting a business
Post by: jimbooboo on 28 March 2012, 13:16
You could register as LLP limited liability partnership...

As for being registered you only HAVE to if your turnover exceed £69,000 IFRC something around £69k

Get some software called sage its a really good and widely used accountancy software.

Also get an accountant who can make the best of your taxes. You can claim a lot against your taxes, legally.
Title: Re: Starting a business
Post by: golf-sib on 28 March 2012, 14:16
I got sage, its an early copy, will have to play around with it.

My partner is helping with some of the book keeping as she works in payroll and accounts so that has took some stress off and simplified things.

Just a case of getting a bank account now, do banks require a business plan even though there are not any outgoings as its more of a hobby that may become a full time business with pretty much zero running costs and no investment needed?
Title: Re: Starting a business
Post by: Kerrse on 28 March 2012, 14:53

Just a case of getting a bank account now, do banks require a business plan even though there are not any outgoings as its more of a hobby that may become a full time business with pretty much zero running costs and no investment needed?

Not sure on this front can ask the other half as she was a business banking manager & area business banking manager so if anyone would know it should be her  :grin:
Title: Re: Starting a business
Post by: golf-sib on 28 March 2012, 15:06

Just a case of getting a bank account now, do banks require a business plan even though there are not any outgoings as its more of a hobby that may become a full time business with pretty much zero running costs and no investment needed?

Not sure on this front can ask the other half as she was a business banking manager & area business banking manager so if anyone would know it should be her  :grin:

please do otherwise I will bust in with the sketch from southpark.

Steal underpants -> ??????? -> profit

(http://upload.wikimedia.org/wikipedia/en/d/dd/Gnomes_plan.png)

:grin:

The OH also found some free HM workshops which I think will be a more than good idea to attend.
Title: Re: Starting a business
Post by: Kerrse on 28 March 2012, 15:42
No business plan needed if no borrowing required but you can get template Business Plan of HSBC (and most banks) websites if needed  :cool:
Title: Re: Starting a business
Post by: golf-sib on 28 March 2012, 15:57
Thanks a million.

Will be popping down the bank tomorrow.

Can't thank everyone enough its not as bad as I first imagined.
Title: Re: Starting a business
Post by: Dolly on 28 March 2012, 20:48
Set up my own limited company a month or so ago, never done it before abit daunting but now its all sorted and im trading it wasnt that bad!  :smiley:
Title: Re: Starting a business
Post by: RedHP on 29 March 2012, 16:55
PM me if you need advice

Red
Title: Re: Starting a business
Post by: Lankylad78 on 30 March 2012, 22:59
I set up my own company last august with a friend. Similar situation to you. We're both in full time employment and are doing this in our spare time.

Company name: Try someone like companies made simple. Small fee, but you can check availability of names and they sort it out for you.
Bank account: All much of a muchness tbh. Most are offering 2 years free banking.
Accounting: We use a free online software called Quick File. Simple to use. Does invoices, can upload bank statements etc. We plan to get an accountant to tidy things up for us when required.
Taxes: As far as I was aware, if you are PAYE with your current employer the only tax required is corporation tax. VAT is not mandatory until your turnover is £70k

Good luck with the business. If you don't try you'll never know.