Do I need to be a 'company'

  • Thread starter Thread starter JPS
  • Start date Start date
JPS

JPS

Suspended / Banned
Messages
2,444
Edit My Images
Yes
Right then, I've mentioned before that my employer asked me to quote for a photographic job later in the year, it looks like I have got the gig due to them emailing me a form to complete. It's a preferred suppliers detail form that they use when sourcing items from external companies/businesses.

It is asking for VAT details (not VAT registered so that's fine) and amongst other things, Company registration number. I don't want to look a fool at work so I'm asking this here :D Would you think I would need to set myself up as a company or is that not important - if so what is the best way to do this sort of thing. Should I just set up another bank account and leave it at that and use this new one for my 'business' monies.
 
as far as I know company nymbers etc are only for registered/limited companies etc. I am self employed and run my own business and have never had to register it anywhere (apart from informing the tax man etc).

A business account may be usefull for you. But mine is crap so I dont use it, I just put money into my current account. As long as you keep track of payments etc to keep the tax man happy there is no problems.
 
Okay Jimmy, sounds good. Was just asking becasue I know our next door neighbour has his own sign writing business and is registered on the Comapnies House website with a company number.
 
Usually you need only reg a Ltd company I ran my own business for years used my own name to keep it simple and not infringe anyones copy right Good luck with the shoot
Bob
 
I don't use a business account either, saves a small fortune on bank fees :thumbs:
 
If you trade with out setting up a limited company then you are a “sole trader” in the eyes of the law. This is no problem and makes admin very simple as there isn’t any apart from pay tour income tax. The down side is if someone trips over your kit bag or you damage something in your clients premises they will sue you as an individual and if you loose they can peruse you for compensation. In an extreme case this may mean you loose your house to pay a personal injury claim (or perhaps even just the legal bill to defend yourself).

If you register as a limited liability company there is more paperwork, but not much. You will need to file annual accounts which are very basic for a small business, you will need to file a corporation tax return (form CT600) and pay tax on your companies profit and you will also need to have employers liability insurance as you will be employed by the company as a director. You also need a registered address and a company sectary. These last two could be your spouse and your home address but they don’t have to be. For about £100 you can employ a third party as company sectary and registered address. You would also be well advised to have public liability insurance. Having done all this if you have a mis-hap the claimant would pursue the company as a legal entity not you. If the company was found to be negligent the claimant can only pursue the company for the assets it holds i.e. not your house or other possessions. In this instance most small limited companies would declare bankruptcy bringing an end to the claim, this is why as a responsible director you would have public liability insurance. If a company is declared bankrupt the director can set up a new company the next day if they wish, you may be GB photos Ltd one day and Photos GB Ltd the next. If you are personally declared bankrupt you cannot be a company director and you would have credit trouble for ever more.

In summary for one simple low risk job be a sole trader, for an ongoing business venture open a limited company.

I hope this helps.

P.S. this is for information only any action you take is your responsibility, please don’t sue me. I have to put that in for legal reasons!
 
Some good info above from ilikebowens.

Company law is the process of quite a bit of change at the moment. Some of this change will make life easier for small companies such as those you might consider setting up for yourself. For example you will no longer need to have a co sec, and the Memorandum and Articles of Incorporation (legal docs needed to form a company) will be simpler. Perhaps worth bearing in mind.

:)
 
Being a sole trader is far more likely to suit you if you are only doing it part time. Public Liability insurance is available for sole traders too.
 
You must log in or register to reply here.
Back
Top