setting up business - things to do...?
Discussion
Hi All (Eric 
)
Okay - details of business below...what im looking for is advice at poinnt of registering and setting it up. I am getting local accountant too, but thought id get additional advive if possible
So. It's a mobile paint spraying lark and involves the following
2 people. Me and technician. I will do no work am just paying for everything for set up. He will do all work. Must he be an employee or can we both be directors?
If so, do i need pay anyone a wage or can it be done via setting the company up with shares and paying a 'dividend' If this is regular will it obviously be a salary and does that matter?
Assets
A van
Is there anything relevant about where the company is registered and if mate has van it then becomes a benefit in kind, rather than company vehicle?
non consumables: compressor, hoses, spary guns, laptop, buffer
consumables: paint, buffer heads, mixing pots, solvent, polish, waxes, blue roll, wet n dry, filler
Is there a best way to put these into the company for tax or should they literally be listed as above?
insurance and liability cover - anything worth considering here?
and basically any other advice from anyone much appreciated
cheers
Night
)Okay - details of business below...what im looking for is advice at poinnt of registering and setting it up. I am getting local accountant too, but thought id get additional advive if possible
So. It's a mobile paint spraying lark and involves the following
2 people. Me and technician. I will do no work am just paying for everything for set up. He will do all work. Must he be an employee or can we both be directors?
If so, do i need pay anyone a wage or can it be done via setting the company up with shares and paying a 'dividend' If this is regular will it obviously be a salary and does that matter?
Assets
A van
Is there anything relevant about where the company is registered and if mate has van it then becomes a benefit in kind, rather than company vehicle?
non consumables: compressor, hoses, spary guns, laptop, buffer
consumables: paint, buffer heads, mixing pots, solvent, polish, waxes, blue roll, wet n dry, filler
Is there a best way to put these into the company for tax or should they literally be listed as above?
insurance and liability cover - anything worth considering here?
and basically any other advice from anyone much appreciated
cheers
Night
RedCabbage said:
Is this a smart repair franchise by any chance?
RC (Ex-smart repair franchisee)
nope....he used to work for a franchise (colourtech/colourworks) but just cant see the benefits of being in one when you have more work than you can handle anyway. wrk exactly on same lines however RC (Ex-smart repair franchisee)
Eric Mc said:
As you have an accountant, I suggest you liaise closely with him/her.
Much as I'd like to pass on some of my professional knowledge, I have to be careful about the ethical constraints that operate within the profession.
fair enough, totally understand...could you just tell me that im asking the right questions here? is there anything obvious have forgotten?Much as I'd like to pass on some of my professional knowledge, I have to be careful about the ethical constraints that operate within the profession.
ta muchly
Night
Nightmare said:
RedCabbage said:
Is this a smart repair franchise by any chance?
RC (Ex-smart repair franchisee)
nope....he used to work for a franchise (colourtech/colourworks) but just cant see the benefits of being in one when you have more work than you can handle anyway. wrk exactly on same lines however RC (Ex-smart repair franchisee)
superlightr said:
can you do the work as well?
Whats happens when the tech is ill or on holiday?
What commitment is the tech putting in to the business? Can you trust him?
setting up and getting the physical items is not hard - its the staff issues that will screw you.
no...i cant do the work.....so if he is ill or on holiday we make nothing. shouldn't be a problem as overheads only really exist when he's working. He doesnt get a holiday till i get my initial investment back Whats happens when the tech is ill or on holiday?
What commitment is the tech putting in to the business? Can you trust him?
setting up and getting the physical items is not hard - its the staff issues that will screw you.
can i trust him...very interesting question as it goes....i hope so.....he works pretty hard, and is very good at it. fingers crossed he wont get bored too quickly and decide he cant be bothered (and it's a very cheap set-up (Less than 15K) so if it all goes horibly wrong it doesnt really matter)
Eric Mc said:
I presume you are running the business as a limited company?
And why are you asking about the location of registration. Companies registered in the UK are registered at Companies House in Cardiff or Edinburgh.
see...my ignorance just becomes clear for all! intending for it to be a limited company - I thought you had to say where the business was located (as in a physical premises) or is that not true?And why are you asking about the location of registration. Companies registered in the UK are registered at Companies House in Cardiff or Edinburgh.
The company has to have a registered office. This is the address that is kept at Companies House and is the company's "legal" address for statutory purposes.
The address can be any normal address - e.g. it can be your home address, the business address, an accountant's address or a solicitor's office address.
It cannot be a PO Box number.
The trading address and the Registered Office do not have to be the same.
Companies based in England and Wales register at Companies House in Cardiff. Scottish companies register at Companies House, Edinburgh.
The address can be any normal address - e.g. it can be your home address, the business address, an accountant's address or a solicitor's office address.
It cannot be a PO Box number.
The trading address and the Registered Office do not have to be the same.
Companies based in England and Wales register at Companies House in Cardiff. Scottish companies register at Companies House, Edinburgh.
Nightmare said:
2 people. Me and technician. I will do no work am just paying for everything for set up. He will do all work. Must he be an employee or can we both be directors?
If so, do i need pay anyone a wage or can it be done via setting the company up with shares and paying a 'dividend' If this is regular will it obviously be a salary and does that matter?
Assets
A van
Is there anything relevant about where the company is registered and if mate has van it then becomes a benefit in kind, rather than company vehicle?
Whatever structure the company has, there have to be profits from which to pay dividends. How will your worker be paid while the business gets going?If so, do i need pay anyone a wage or can it be done via setting the company up with shares and paying a 'dividend' If this is regular will it obviously be a salary and does that matter?
Assets
A van
Is there anything relevant about where the company is registered and if mate has van it then becomes a benefit in kind, rather than company vehicle?
On the van, if it's owned by the company and available for private use, then it's a BIK. If the van is essential to the business, and it's loaded with expensive tools, then maybe it would be better to keep it somewhere secure (shouldn't be a problem even if this is at his home) and not use it privately, in which case the tax issue goes away.
Me and some colleagues set up our business a couple of years ago, and it really isn't easy to pull all the pieces together. There ought to be a big flow-chart somewhere that you can just follow.
Have a look at:
http://www.companieshouse.gov.uk/infoAndGuide/comp...
(select topics from the box on the right - especially look at Directors Responsibilities)
and
http://www.businesslink.gov.uk/bdotg/action/getSta...
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