Starting a business.

[Cyrill666]

I help to run a community website that attracts a significant amount of traffic. We charge local companies to advertise on the site and the revenue generated is approaching a value where we'd like to set up a company to run the site under.

My question is how do I go about setting up a company? I've never even looked into it before, I wouldn't know where to start. This venture will remain part time as we don't earn enough to live off. Any help or pointers would be gratefully received..

Kind regards,
Cyrill666

Originally Posted by Cyrill666

I help to run a community website that attracts a significant amount of traffic. We charge local companies to advertise on the site and the revenue generated is approaching a value where we'd like to set up a company to run the site under.

My question is how do I go about setting up a company? I've never even looked into it before, I wouldn't know where to start. This venture will remain part time as we don't earn enough to live off. Any help or pointers would be gratefully received..

Kind regards,
Cyrill666

First step would be CAB I believe, think of a name for the comapny and get CAB to do a search of company names to check for "doubles".
you would then need to appoint directors perhaps, create a company bank account, Get employers liablilty insurance!!!!! Get a letter head made up or create one.
You also could walk into the local Benefits office and enquire there, they should be willing to help.

[Sociable]

As this is a community project you may also want to think about setting up as a registered charity instead, if only to limit tax liability and also gain exemption from certain other requirements involved in setting up as a limited company.

The Charity Commissioners do a special info pack complete with application forms and no doubt info is also available on-line too.

Worth thinking about along with the other option anyway.

[paulyoung666]

now theres a point , try here

[br3ach]

http://www.becauseyoucan.com/intro.jsp

Not sure if this will apply to you, but have a look there

Looks proffesional, and full of info

Wrth a look atleast

[Escapee]

Originally Posted by Cyrill666

I help to run a community website that attracts a significant amount of traffic. We charge local companies to advertise on the site and the revenue generated is approaching a value where we'd like to set up a company to run the site under.

My question is how do I go about setting up a company? I've never even looked into it before, I wouldn't know where to start. This venture will remain part time as we don't earn enough to live off. Any help or pointers would be gratefully received..

Kind regards,
Cyrill666

If you do go for the limited company route many of the companies advertising company formation online will allow an online search for a suitable name, or will search for one that you supply.

I bought a company off the shelf for about £60, and it has been very usefull investment apart from the annual returns!

[peachey]

Originally Posted by Cyrill666

My question is how do I go about setting up a company
Kind regards,
Cyrill666

I know it's cynical of me
but ask any government official about setting up a company
and the first thing they will address is how to register for
paying tax

[Escapee]

Originally Posted by peachey

I know it's cynical of me
but ask any government official about setting up a company
and the first thing they will address is how to register for
paying tax

All taken care of when you buy a company off the shelf

I have only turned over a small amount of business employing only myself, but they certainly frighten you with all the paperwork for paying employees contributions and lots of pre-paid addressed envelopes for me to pay them money!

[Cyrill666]

Wow, thanks for all the responses everyone - very much appreciated.

Most sites I've looked at so far assume that the business will be set up and run on a full-time basis (as they would I suppose), this is certainly not the case and I would be surprised if our business turned over more than a thousand pounds a year (that's between two of us) - it really is a part-time venture - more a hobby than anything else. Do the regulations differentiate between a full time and part time/hobby business? What I don't want to do is end up paying out the small amount of cash we do earn to "pay" for the companies very existence.

Escapee, buying a company off the shelf sounds interesting, can you offer any good links?

Thanks again for your help!

Kind regards,
Cyrill666

[Escapee]

Originally Posted by Cyrill666

Wow, thanks for all the responses everyone - very much appreciated.

Most sites I've looked at so far assume that the business will be set up and run on a full-time basis (as they would I suppose), this is certainly not the case and I would be surprised if our business turned over more than a thousand pounds a year (that's between two of us) - it really is a part-time venture - more a hobby than anything else. Do the regulations differentiate between a full time and part time/hobby business? What I don't want to do is end up paying out the small amount of cash we do earn to "pay" for the companies very existence.

Escapee, buying a company off the shelf sounds interesting, can you offer any good links?

Thanks again for your help!

Kind regards,
Cyrill666

I looked in the Exchange and Mart under the business section as many company formation adverts are in there. It was quite painless and I chose a company from their online list with a suitable name allready formed but not trading.

[Cyrill666]

smashing, thanks.

Can you give me a very rough figure of annual essential business costs/fees - in terms of basic legal requirements.

Cheers,
Cyrill666

[peachey]

if you are turning over less than £1000
why would you want to go down the official company thing
and get all wired up for taxes and stuff?


(stay wood boy! - stay wood! as they said to pinnochio)

[SMHarman]

Originally Posted by Cyrill666

I help to run a community website that attracts a significant amount of traffic. We charge local companies to advertise on the site and the revenue generated is approaching a value where we'd like to set up a company to run the site under.

My question is how do I go about setting up a company? I've never even looked into it before, I wouldn't know where to start. This venture will remain part time as we don't earn enough to live off. Any help or pointers would be gratefully received..

Kind regards,
Cyrill666

Do you employ anyone directly (not through an agency)
Do you have any business premises.

Reading throught the other posts both look like a No.

[Cyrill666]

Hi,

We thought registering as a business would give a more professional appearance to our customers, I'm just looking into the costs involved. It's also possible that we could earn significantly more in the future so getting set up now may not be a bad idea.

Nobody is employed as such, it's a partnership - I do my bit from my home, and my colleague works from his home so there are no premises.

Cheers,
Cyrill666

[SMHarman]

Originally Posted by Cyrill666

smashing, thanks.

Can you give me a very rough figure of annual essential business costs/fees - in terms of basic legal requirements.

Cheers,
Cyrill666

At this level about 0.

I think the only cost is your annual company return costing about £60.

There will be no tax liability on profits at this level (at the moment - this might change, but is unlikely).
There will be documentation etc and some tax payable if you distribute this profit.

VAT registration is not required. Though if you are selling advertising to Vat registered companies and are experiencing costs that incur VAT then registration may be beneficial. This will lead to a quarterly return.

Ee's - if you have any will require monthly payroll returns and PAYE / NI.

Audit Costs - an audit is not required you are below the audit threshold. As a charity you may require an audit costing probably £300-500.

Bank Account - will be free for the first 2-3 years then expect bank charges on transactions (deposits and payments).

Company formations - never tried any of them but they are in the back of accountancy age

www.fdregistrars.co.uk £49
www.stanleydavis.co.uk £30+vat
www.ukplc.net/companyformations
www.hanovercs.com £47.95
www.brightonformations.co.uk

You buy a company of these people, say for the latter you could buy a company called Brighton Formations 2456 Ltd.

You they then change the directors and shareholders, then you enact a name change and change the share capital if you want to increase it. This is the best way to form a company.

Originally Posted by Cyrill666

Hi,

We thought registering as a business would give a more professional appearance to our customers, I'm just looking into the costs involved. It's also possible that we could earn significantly more in the future so getting set up now may not be a bad idea.

Nobody is employed as such, it's a partnership - I do my bit from my home, and my colleague works from his home so there are no premises.

Cheers,
Cyrill666

Do either of you take money from doing this. This £1000 a year. Do you split it say 50/50 and then each put £500 in the bank?