Need Help from UK Warriors re: business starting

Some good starting information to read -

Set Up a Limited Company - Business Guide

A company that specialises in setting this stuff up for people -

UK Limited Company Formations...ONLY £23.99, Offshore Companies, Company Formation, Accountancy

No aff links just stuff I found recently while researching this myself.

Some good starting information to read -

Set Up a Limited Company - Business Guide

A company that specialises in setting this stuff up for people -

UK Limited Company Formations...ONLY £23.99, Offshore Companies, Company Formation, Accountancy

No aff links just stuff I found recently while researching this myself.

Hi Deepak

Registering the company cost me abut £35. I registered it via one of the links on google.co.uk for "company registration".

The accountant I got did all the related stuff to do with submitting to companies house etc.

The accountant was pretty willing for me to use his address as the company address. At the time I had 2 companies and I used my address for one and his address for another.

He seemed to actually prefer me to use his address as then he'd promptly receive all the things sent from the Inland Revenue.

I was surprised how at how many things he took off my hands. So basically from my point of view it amounts to:

Register the company
Find a good accountant. Some accountants also have a private company registration service, but those internet companies are cheaper.

For finding an accountant I used the same one as a builder acquaintance I had at the time.

I've been trading for over 3 years with the same setup. No problems. Except his fees. LOL. Yeah, and limited companies have more paper work in the UK. Not the sort of stuff you could do on your own so you need an accountant.

Final thing: I was making a decent amount of money 3 - 4 months before I opened formally for business. I put about one month of those expenses and income onto my first years accounts. The rest (income, but no expenses) went into my personal income and taxes for that year.

Good luck. PM if you need more in case I don't see this thread again.

Luke

Deepak

I'm not sure why you feel the need to set up a limited company before you even start earning. My advice would be to begin as a sole trader.

You should be able to open a standard business account with your current bank (or any other main bank) to keep your business separate.

In my experience, a limited company might only be worth considering when (or if) the time comes to invest in premises, staff etc. or if you were planning to take out a large loan to finance your business.

Otherwise, keep it simple.

Best of luck.


Frank

You are lucky to be based in the U.K. I've done business in both the U.K. and the U.S. as well as on the continent and setting up a company in the U.K. is the easiest of all. Don't let anyone tell you otherwise... they're talking b.s.

You can buy a U.K. limited company (equivalent to a U.S. LLC) online in a matter of a few minutes for less than 50 pounds. Others have already provided links. It's up and running the same day.

Do this part yourself because it's so simple. If you get a chartered accountant do do it for you they'll charge several hundred pounds for the privilege!

In fact, I would advise you to forget about an accountant at this point because that's the one thing that's the most expensive. The online service that sells you a company will register it and instruct you in what to do. Your own address can serve as the registered address.

You can also open your own company bank account (something that will cost a lot to have handled by a third party). All you need are your company registration docs (that you'll get in the mail) and your usual personal documentation. U.K. banks tend to be real snooty about new company accounts (even before the current crisis) so you'll do best to go to where you bank personally and talk to the manager there.

Don't waste money on an accountant until you've got the company set up and running.

You probably realize that you don't have to have a limited company to do business, but there are advantages if you plan to make serious money. One last thing you might want to consider if your plans are ambitious: a Cypress company or similar base. This is not ofshore and it's totally legal. Cypress is an EU country but has only 8% corporate tax and many other business advantages. You can get a company there with bank account for somewhere between 1500 and 2000 pounds. It could pay for itself in one year of tax savings!

I'm looking at this option myself. You need professional financial advice before you take this route.

Don't worry about it - just go to a LOCAL accountant (not a corporat one that costs £10,000 for a tax return) and get advice from them.

Seriously - I went to all sorts of people but it was a good friend of mine who said to just go to an accountant. I did and was signed up as self employed the next day. My initial tax return was submitted a week later. Cost: £200.

LTD companies are a lot more complicated but unless you're doing over £40k PROFIT (I.E above 'expenses' such as a new computer, office, work space, materials, car, business trips, etc, etc) and don't like paying 40% to the govt, do u have to worry about anything.

Most accountants do initital consultations free, too. Just get yo ass down there and talk it out!

Deepak,

Definitely don't jump in with an LC until you absolutely need to, which from the sounds of things isn't quite yet.

Grab your yellow pages and find a few local accountants and give them a ring. Some will give you some helpful advice over the phone, and most of them will offer you a free consultation period to see if you're a good fit for each other.

Doing it that way and getting concrete advice from a pro is going to be a lot better for you when it comes to planning the next steps for your business.

Hope that's useful.

David

I ll contact Business link and speak to a local Accountant for more advice tomorrow.

Thanks

Deepak,
My advice is to call around a few local firms. Most will give you a free consultation. Find one you like and go with their advice on whether you need a company. As your business grows then you can always change both what you trade under (sole trader, llc or ltd) and bigger accountants that may be more suitable to larger trading entities in the UK.

Rich

Here's what you need to do.

http://www.hmrc.gov.uk

Read the information.

Find a local accountant who understands the rules and has read and interpreted the above web site.

99.9% of Accountants don't really know the rules, they just guess at their interpretation.

A limited liability company will only cost £30 to £50 to set up, but in doing so you have to comply with the companies house regulations.
File on time, pay them a fee every year, file your documents on time.

Goodness knows I could rant on this topic for hours, but I won't.
Limited Liability is better than sole proprietor or "a" partnership business.

BUT - You have to abide by the rules, so read them and understand them.

Interesting topic nonetheless.

http://www.companieshouse.org.uk (closed at weekends though! - go figure!)

End of rant. Hope it helped.

Janet