Register company as a sole trader
Discussion
Ok, so im starting up a business as a sole trader, Dropshipping working from home.
I wish to register as a company to secure the Name (i own the domain already) but also to look more professional when approaching suppliers.
I would have thought this is a straight forward process but it seems very over complicated, All i can find on Companies house is to register a Ltd company, which its not. (yet)
Has any got any experience with this and can point me in the right direction?
I would rather avoid one of these companies that do it for you and take a cut as that seems a waste of money.
I wish to register as a company to secure the Name (i own the domain already) but also to look more professional when approaching suppliers.
I would have thought this is a straight forward process but it seems very over complicated, All i can find on Companies house is to register a Ltd company, which its not. (yet)
Has any got any experience with this and can point me in the right direction?
I would rather avoid one of these companies that do it for you and take a cut as that seems a waste of money.
There is no central government register of business names for sole traders. Companies House is where limited companies and Limited Liability Partnerships (and some trusts and charities) are registered as entities.
A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
Eric Mc said:
There is no central government register of business names for sole traders. Companies House is where limited companies and Limited Liability Partnerships (and some trusts and charities) are registered as entities.
A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
Ok,A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
Thats not very clear on their site.
How do i go about getting a company number?
callmedave said:
Eric Mc said:
There is no central government register of business names for sole traders. Companies House is where limited companies and Limited Liability Partnerships (and some trusts and charities) are registered as entities.
A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
Ok,A sole trader only needs to notify the various arms of HMRC that a business has been set up and that there will be a requirement for you as an individual to complete and submit Self Assessment tax returns. You may need to set up your business for VAT and/or PAYE if these taxes are relevant.
Thats not very clear on their site.
How do i go about getting a company number?
callmedave said:
Ok,
Thats not very clear on their site.
How do i go about getting a company number?
You only get a company number if you're one of the companies registered at Companies House.Thats not very clear on their site.
How do i go about getting a company number?
Sole Traders don't qualify - they don't need to be registered (and therefore can't register).
VAT numbers, on the other hand, are HMRC's responsibility.
Edited by marshalla on Wednesday 15th April 12:57
In order to "get a company number" you would need to go through the process of setting up a limited company. I would not advise anybody to set up a limited company unless they -
are intending to run their trading activity through a limited company
are fully aware of the legal aspects of what a limited company is
know and understand their responsibilities as a director of a limited company
know the additional accounting and legal filing requirements of a limited company
know about PAYE matters
know about Corporation Tax matters
are intending to run their trading activity through a limited company
are fully aware of the legal aspects of what a limited company is
know and understand their responsibilities as a director of a limited company
know the additional accounting and legal filing requirements of a limited company
know about PAYE matters
know about Corporation Tax matters
Kudos said:
Not being cheeky, but are you sure you're ready for this? I know setting up company etc is a one off and not hugely relevant to running a business, but you sound a bit out of your depth
Have you done your figures etc in the business?
Hi. Im confident that I'm ready for this. I've never run a business before, but I've experience in the trade, in theory I can run this beside my full time job. Over heads are next to nothing and I don't need to make a wage from it, just a profit. I'm sure I'm go to learn a lot in the coming months and I'm open to any suggestions and feedback (I've included a feed back bit on the website) I've been speaking to friends and family and other people in similar situations. I'm not expecting to become a millionaire over night with this. I'm aware there will be highs and lows and a lot of hard work, but I can't keep doing what I'm doing as I want to branch out on my own. Have you done your figures etc in the business?
Kudos said:
Not being cheeky, but are you sure you're ready for this? I know setting up company etc is a one off and not hugely relevant to running a business, but you sound a bit out of your depth
Have you done your figures etc in the business?
It's a drop shipping business, there's not much to them that can't be learned as you go if the plans are fairly modest to begin with. For one that's turning over less than the VAT threshold there's even less to think about.Have you done your figures etc in the business?
OP - have you spoken to potential suppliers yet? You might find they're less willing to work with you if you're not Ltd Co.
For the rest of the chutney like tax, just pay an accountant and get whatever software they tell you they prefer to keep on top of book keeping etc. Costs beans [badumtish] and is one less thing to worry about on a day-to-day basis.
Stu R said:
OP - have you spoken to potential suppliers yet? You might find they're less willing to work with you if you're not Ltd Co.
For the rest of the chutney like tax, just pay an accountant and get whatever software they tell you they prefer to keep on top of book keeping etc. Costs beans [badumtish] and is one less thing to worry about on a day-to-day basis.
Yes, and I'm getting more saying no than yes. (Hence why I wanted the company no.) But there's a lot of suppliers available and I've got a long list to go through.For the rest of the chutney like tax, just pay an accountant and get whatever software they tell you they prefer to keep on top of book keeping etc. Costs beans [badumtish] and is one less thing to worry about on a day-to-day basis.
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