Setting up new business

Discussion in 'Business' started by SassiMac, Nov 24, 2016.

  1. SassiMac
     
     
     
     
    Hi,

    I'm new to this site, but thought it's the best place for advise from people in the know.

    I've recently qualified in Level 2 beauty, CND Shellac & LVL lashes. I'm looking to set up my own little business working from my spare room. Question is.. Do I choose to register as a sole trader or as a limited company & do I have to do this before my insurance? I've looked at the HMRC website & just can't decide. What do most of you guys do?

    Any advise would be really appreciated.

    Thanks!
     
  2. vickychicky_
     
     
     
     
     
     
     
    As it's going to be just yourself and a small business. I chose sole trader as I was the same, think I got my insurance afterwards too. Xx
     
  3. CFBS
     
     
     
     
     
     
     
     
    You will be starting as a sole trader. You can still employ others when a sole trader if your business expands.

    Limited Company status is for much larger businesses and generally where there are more directors. Its the sort of thing you set up so that if the company goes bust your house and personal possessions can't be taken. A solicitor usually writes up the legal documents for you.

    http://www.startupdonut.co.uk/startup/set-up-a-business/setting-up-a-limited-company
     
    Last edited: Nov 27, 2016
  4. SassiMac
     
     
     
     
    Thanks so much for the advise. Means a lot! Can move forward now.
    Xx
     
    vickychicky_ likes this.
  5. squidgernetball
     
     
     
     
     
     
     
     
     
    As a very rough guide if your business starts to grow, you're better off going ltd if you're paying tax on £15,000 or more.

    Vic x
     
    jbr and MissyJ like this.
  6. Suzie Cleveland
     
     
     
     
     
     
    Just recently registered my business as a company b/c it all took off so quickly! Exciting times ahead! My business partner and I are just about to employ our very first apprentice :)
    SassiMac if you decide to register as a company, a friend put me onto this online company called Register Plus. It was SUPER EASY and wayyy cheaper than I'd anticipated.
    Suzie xx
     
  7. BannerPenguin
    If you're talking about registering as a limited company it should only be about £20 to do yourself or online through a third party if you prefer. I used https://www.theformationscompany.com/ a long time ago.
     
  8. Beckybee
    Surely on an accountant can give you the reason to start off as a sole trader or limited.

    I opened up another salon with my hubby, saw my accountant and we told limited from day one...

    Limited might protect things like your home/car etc should you go under
     

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