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bigtang
27-01-2006, 02:41 PM
Hi guys,

Am a newbie and would like info and advise about setting up a basic company for just simple transaction like having trade account for wholesales. nothing major just after vat number.

Am a student in the UK and do not want any form of suprise bill from legal paper works behind it all. :-)

Please does anyone know the steps and easy way to it.


Thanks

Simon Nolan
27-01-2006, 03:02 PM
Buy an off the shelf company, will cost about £120.

If you look it up on the web loads of people can do it for you.

captainadventure
27-01-2006, 03:08 PM
Why do you want to be VAT registered? Depending on the type of business and your turnover it is not necessarily useful to be VAT registered.

It's probably useful to read some of the articles on this site and also www.businesslink.gov.uk has plenty of advice on the subject.

James Smith
27-01-2006, 03:43 PM
Erm I would disagree quite strongly Simon's suggestion.

You say you are a student and donít want any hidden costs. Therefore the last thing you want is a limited company which might only cost a few £'s to set up (£35 in fact) as this also comes with hundreds of pounds in fees to run the thing properly and file all the accounts. I would budget a good £1,000 to open/find out how to run it/one year of accounts/close it down if you donít need it.

Certainly not helpful for a student, although I have got a two students on my books who do have businesses large enough to justify the costs of a company.

What you probably want to do is to start trading in your name as a "sole trader" and keep it simple to start with until you have proven the business model works. The business link site suggested above will give you some background about the forms of business you can use.

Regards,

bigtang
27-01-2006, 03:54 PM
Thanks guys,

James what you said sounds good but to be precise, its just getting stuffs online for wholesale price and selling on places like amazon and ebay just to make few cash for myself. most company would ask for VAT number b4 u can have trade account with them.
Or is this wrong?

And being sole trader what do i need and what does it take.

chers guys

Martin
27-01-2006, 04:01 PM
Originally posted by bigtang
Thanks guys,

James what you said sounds good but to be precise, its just getting stuffs online for wholesale price and selling on places like amazon and ebay just to make few cash for myself. most company would ask for VAT number b4 u can have trade account with them.
Or is this wrong?

And being sole trader what do i need and what does it take.

chers guys

Dropshippers normally won't ask for a VAT number.

http://www.thewholesaleforums.co.uk is a good source for Dropshippers.

This means you can operate as just "Self-Employed" which is easier. (and cheaper)

Word of warning, when sourcing suppliers online make sure you check them out! ... Beware of scammers!

moneyman
27-01-2006, 04:02 PM
James is bang on as usual. But he forgot the VAT. if your turnover is not going to be over £60,000 registration limit i would have serious thought about whether you want to touch it. The VAT boys do not play games. when they expect you to pay is when you pay. They have alarming powers well beyond the police.business links are very helpful for startups. a bit of sole trading ie you trading as ........ to start and if things pick up the get limited but that is not the be all and end all. many £1,000,000 turnover businesses are sole traders.

captainadventure
27-01-2006, 04:10 PM
To be a sole-trader you will have to register with HM Revenue & Customs as self-employed, i think the actual form needed is CWF1.

This means that you will then pay income tax on your 'business' profits by self-assessment tax return the january following the end of your business year.

I would definitely recommend thinking long and hard about your business plan prior to this though and to also take some professional advice. After all, as a sole-trader you are personally liable for any liabilities incurred during the course of your business trading.