jimbob
 Offline
Posts: 1435
|
 |
« on: Thursday, September 23, 2010, 12:14:49 » |
|
Me and a mate are starting up a business. However, cos its gonna be a 'grower' (we hope), we aint likely to generate any revenue for at least 6-12 months and the initial overheads are minimal (website and time). We're both carrying on with our day to day jobs. Advice I'm after is, how shall we set up? e.g. plc/ltd/?? we want to keep accountancy fees to a minimum given that turnover wont be great early doors. Any advice welcome  Cheers |
|
|
|
|
Logged
|
|
|
|
Samdy Gray
Dirty sneaky traitor weasel
Offline
Posts: 27183
|
|
« Reply #1 on: Thursday, September 23, 2010, 12:26:20 » |
|
Depends on individual circumstances, as each has different tax treatment, but a partnership (LLP) would probably be the best option for a start up.
It'd be worth taking some legal advice. Some banks have business account managers that will be able to help too.
|
|
|
|
|
Logged
|
|
|
|
Samdy Gray
Dirty sneaky traitor weasel
Offline
Posts: 27183
|
|
« Reply #2 on: Thursday, September 23, 2010, 12:27:43 » |
|
|
|
|
|
|
Logged
|
|
|
|
jimbob
Offline
Posts: 1435
|
|
« Reply #3 on: Thursday, September 23, 2010, 12:32:06 » |
|
cheers Sam...I have a look at that
|
|
|
|
|
Logged
|
|
|
|
Mexicano Rojo
Offline
Posts: 11957
Demasiado no es demasiado
|
|
« Reply #4 on: Thursday, September 23, 2010, 12:36:06 » |
|
as said all depends on business, if you go ltd. you are not personally liable.
|
|
|
|
|
Logged
|
|
|
|
ghanimah
Offline
Posts: 3639
|
|
« Reply #5 on: Thursday, September 23, 2010, 12:37:21 » |
|
as said all depends on business, if you go ltd. you are not personally liable.
Not unless you trade knowingly insolvent |
|
|
|
|
Logged
|
"We perform the duties of freemen; we must have the privileges of freemen ..."
|
|
|
Mexicano Rojo
Offline
Posts: 11957
Demasiado no es demasiado
|
|
« Reply #6 on: Thursday, September 23, 2010, 12:38:22 » |
|
well yes but i aint no diamandis
|
|
|
|
|
Logged
|
|
|
|
ghanimah
Offline
Posts: 3639
|
|
« Reply #7 on: Thursday, September 23, 2010, 12:39:14 » |
|
well yes but i aint no diamandis
 |
|
|
|
|
Logged
|
"We perform the duties of freemen; we must have the privileges of freemen ..."
|
|
|
Stef Troll
Offline
Posts: 3161
|
|
« Reply #8 on: Thursday, September 23, 2010, 13:03:10 » |
|
Set up a limited company and then make it dormant untill you start trading
|
|
|
|
|
Logged
|
|
|
|
|
iffy
|
|
« Reply #9 on: Thursday, September 23, 2010, 13:54:11 » |
|
You don't need to set up a company until you're earning revenue. I'm currently working on a couple of projects that might become companies, and the partners have agreed on things like equity share etc, but haven't actually formed the company. Then get your accountant to buy an off-the-shelf number when you know it's worthwhile.
|
|
|
|
|
Logged
|
|
|
|
Simon Pieman
Original Wanker
Offline
Posts: 36336
|
|
« Reply #10 on: Thursday, September 23, 2010, 18:37:44 » |
|
If you think you're going to make plenty of profits then a company would probably be more tax efficient. But as said, there's no hurry and you can incorporate a partnership later down the line.
|
|
|
|
|
Logged
|
|
|
|
|
Talk Talk
|
|
« Reply #11 on: Thursday, September 23, 2010, 18:58:05 » |
|
Sorry, but in my experience partnerships are a sinking ship before they have been launched. I have done work for hundreds of organisations and only a few were successful, enduring partnerships.
Unless you are 3,000% certain of this mate I would incorporate as soon as possible. Then you have a consistent legal right to (say) half of the capital and the business should things go sour. Sure, you can draw up a partnership contract but without the company framework it is always going to be a personal working relationship. Companies seem to focus the mind on being an equally responsible director rather than just a mate.
Sole trader is fine btw.
|
|
|
|
|
Logged
|
|
|
|
jonny72
Offline
Posts: 5554
|
|
« Reply #12 on: Thursday, September 23, 2010, 19:18:45 » |
|
Is this a "business start up" or "two blokes that drunk too much and came up with an idea for a business"?
If it's the former then a limited company would probably make more sense, as the extra admin and costs would be worth it.
If it's the latter you'll probably get away with an agreement on the back of a beer mat and running it on the quiet.
You really need to be careful, plenty of stories of a good business idea turning in to a long lasting nightmare.
|
|
|
|
|
Logged
|
|
|
|
leefer
Offline
Posts: 12851
|
|
« Reply #13 on: Thursday, September 23, 2010, 19:32:04 » |
|
Me and a mate are starting up a business. However, cos its gonna be a 'grower' (we hope), we aint likely to generate any revenue for at least 6-12 months and the initial overheads are minimal (website and time). We're both carrying on with our day to day jobs. Advice I'm after is, how shall we set up? e.g. plc/ltd/?? we want to keep accountancy fees to a minimum given that turnover wont be great early doors. Any advice welcome Cheers Well if your anything like your old man you will be fine  |
|
|
|
|
Logged
|
|
|
|
Mexicano Rojo
Offline
Posts: 11957
Demasiado no es demasiado
|
|
« Reply #14 on: Thursday, September 23, 2010, 19:33:03 » |
|
Sorry, but in my experience partnerships are a sinking ship before they have been launched. I have done work for hundreds of organisations and only a few were successful, enduring partnerships.
Unless you are 3,000% certain of this mate I would incorporate as soon as possible. Then you have a consistent legal right to (say) half of the capital and the business should things go sour. Sure, you can draw up a partnership contract but without the company framework it is always going to be a personal working relationship. Companies seem to focus the mind on being an equally responsible director rather than just a mate.
Sole trader is fine btw.
well in my experience partnerships are fucking great, i have and am still currently involved in 2 partnerships. 14 years and going strong |
|
|
|
|
Logged
|
|
|
|
|
