Have product/revenue, need to go offcial?

[danoleroy]

Hi There.

My names Dan and I'ma part time music/club promoter. I've built a night that is now a respected name on the London scene, and its time to turn it into a business but I'm clueless how.

Basically I run this with one other person but we just want the easiest way to make this all above board. Ideally with both our names attached to it. I think this would be something like Sole trader?

The main things we want to do is to offcially name the business, get payments into a business bank account and take advantage of the expenses we incur (Taxi fares, Equipment Hire, Mobile calls etc), we want a simple solution that isn't time consuming and won't have much paper work. Please advise!!

Thanks

[Incepto]

Take a look through this area of Business Link which should shed some light on the subject:

http://www.businesslink.gov.uk/bdotg...3859131&r.s=tl

From memory, I think a partnership would be the best way to go, but setting up as LTD may be more beneficial when it comes to paying tax. It all depends on plenty of variables, so I'd recommend speaking to an accountant if you want to be 100% sure you're making the right decisions.

However, if you just want to be above board and aren't too worried about losing a bit of money to the tax man, then I think the main thing you have to do is ensure you're both registered as self-employed, and set the business up as a partnership.

I'm sure someone will correct me if I'm wrong though!

[Incepto]

Oops. Sorry. Double post!

(Mods can delete this if they wish!)

[m8internet]

Originally posted by danoleroy
My names Dan and I'ma part time music/club promoter. I've built a night that is now a respected name on the London scene, and its time to turn it into a business but I'm clueless how

Dan, not quite sure about the type of business you've built
If you have indeed built a "night" then I'll have some of that!

Converting your current business into a more professional commercial enterprise is probably what you are trying to achieve, as you appear to be trading already

I would suggest you get a partnership agreement as soon as possible
The main reason being that if your current partner runs up huge debts then does a runner it is YOU that could end being liable for them all
This then brings me on to considering setting up as a registered Limited Company, with you both as directors
Operating as a partnership will be more flexible, but it can be restrictive if your business grows rapidly and consumes more money than you have

Getting a business account will be easy, again as you are already trading
Most banks will ask for a copy of either your statements for the last three months, proof of trading or similar
If you can supply these it will make the application process much easier
If not, then it could take between 7 and 21 days for them to process
Some banks will also be looking for a business plan
It doesn't need to be complex, just a list of who you are, what your business is, what the plans are for the next 12 months, and some financial projections
Choose the business name wisely, as this will appear on the bank account
The advantage there is that customers can then pay you directly or by cheque in your business name

Almost any and all business costs are tax deductable
Keep receipts for everything and make sure the petty cash is regularly balanced
If your transactions are low then there are plenty of books for this, a quick visit to a larger WH Smith store and you will find what you need for that

[James Smith]

You are already a partnership by definition.

Just without the paperwork!

Self employed helpline is here:

http://www.hmrc.gov.uk/startingup/index.htm

You have 3 months to register from when you have started up so you might not even be late yet.

If this is PT them you probably don't want a ltd co. just yet especially if keeping the paperwork to a minimum is a priority for you but it is something to discuss with an accountant as suggested above.

In terms of your records, at a very basic level keep all your receipts in a shoebox and throw at accountant at the end of the year. This obviously costs a lot more in fees than if you can put together a simple set of books, and passing these on to complete your tax return from. Shameless plug time - on my website there is a book about how to keep basic accounts and deal with some more complex issues about VAT and self assessment which is aimed at people starting from scratch with no knowledge about accounts.

Hope that helps

Regards,

[danoriginal]

out of interest...

which night have you organised, and what kind of cash do you make from it now?

also im not entirely sure where the cash comes from, does the venue pay you to put the event on? or do you take the revenue from tickets?

dan