DarrenW
|
| posted on 16/2/08 at 11:27 PM |
|
|
How to start a company?
I really enjoy doing houses up. Just started number 5 today. Thinking about setting up a business. No idea why so need to talk to someone about pros
and cons and what sort of business (sole trader, plc, vat registered or not etc etc).
I will continue working full time, prop dev will be hobby. Wife doesnt work so there maybe some VAT and tax incentives to do it.
Would it be an accountant i should approach or is there such a thing as a business advisor? Can you do a course in setting up businesses?
I dont want to get bogged down with having to achieve certain targets etc but at same time dont want to fall foul of inability to raise finance in the
current credit sensitive market.
|
|
|
|
|
JoelP
|
| posted on 16/2/08 at 11:43 PM |
|
|
your bank would offer some advice, my friend does this and has a good relationship with the bank for flexible money.
Get set up as a sole trader at first. Within months you can work out if vat registered is the way forwards. Theres some stuff about new houses and
existing with regards to vat rate, cant remember it but aforementioned friend was on about it once.
Ltd if it gets big so you dont lose your house when it all comes tumbling down! 
Property developers can make money in rising AND falling markets, but the money is made when you buy at the right price, not when you try to sell for
too much. They say if the offer doesnt embarrass you, you're offering too much!
Ps, you know anyone for kitchens?!
 
kitchen 1
 
kitchen 2
Beware! Bourettes is binfectious.
|
|
|
Lars
|
| posted on 16/2/08 at 11:48 PM |
|
|
You wanna see an accountant. He will explain everything, no need for a course.
Whether you are a sole trader or company will mainly depend on tax savings, which the accountant can calculate, when he gets details.
Also once you get to a certain level of sales you have to register for vat.
|
|
|
colt_mivec
|
| posted on 17/2/08 at 12:04 AM |
|
|
quote:
Ltd if it gets big so you dont lose your house when it all comes tumbling down!
I think you mean IF!!! He might be very successful and hand it down through the family.
Our family business has ran 35years and i am now in a position to take it on for another 35 hopefully.Theres no reason for it to come crashing down
[Edited on 17/2/08 by colt_mivec]
|
|
|
JoelP
|
| posted on 17/2/08 at 12:18 AM |
|
|
hope for the best, prepare for the worst!
Beware! Bourettes is binfectious.
|
|
|
colt_mivec
|
| posted on 17/2/08 at 12:21 AM |
|
|
I agree but give the man some good news...
|
|
|
Guinness
|
| posted on 17/2/08 at 07:47 AM |
|
|
Darren,
When I set up my business, I visited my local Business Link and met with an adviser there. He was really helpful, giving me loads of advice and
further contacts.
Their website is also really good (surprising for a govt thing)
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805&r.s=tl
Also Her Maj Rev & Customs site is quite good too!
http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml
HTH
Good luck!
Mike
P.S. If you need a Project Manager! 
|
|
|
TimC
|
| posted on 17/2/08 at 09:43 AM |
|
|
quote:
Originally posted by colt_mivec
I agree but give the man some good news...
Ok, my (bezzie) mate is doing this and reckons he'll be mortgage-free in a stunning home in 10 years. He's 28 now. The commitment and
effort involved is massive, but if you can be single-minded enough then I wish you all the best. I couldn't do it - he's had to
'give-up' cars. 
|
|
|
graememk
|
| posted on 17/2/08 at 10:09 AM |
|
|
i'm self employed, at times it would be nice to just finish pack up and go home and wait for my pay packet, but thinking about it i couldnt go
back to working for someone else, i also love the fact i get paid every day lol
good luck, not that you'll need it.
|
|
|
Robertf
|
| posted on 17/2/08 at 10:30 AM |
|
|
I set up a website design complany in partnership with a friend as a sideline.
Business link is a good place for info.
I got a book first - loads available in waterstones etc. I prefer to do a bit of reading before talking to anyone, so I know a little of what they
are talking about.
Partnership is really straightforward, tax etc is really easy to do as well, only downside is unlimited liability if it all goes wrong.
Best of luck!
|
|
|
ravingfool
|
| posted on 17/2/08 at 10:53 AM |
|
|
I'd also recommend talking to your solicitor about the legal side of things and the liabilities involved in the possible different business
vehicles.
They will be able to advise you on the tax implications and also give more general advise on the pros and cons of different set ups.
If you get yourself organised with as much information as you can about what you are currently planning (amount of time and money you'd be
thinking of investing initially and the amount of profit you'd be looking to make pro rata) they should be able to give you quite a lot of help
in a half hour meeting.
|
|
|
StevieB
|
| posted on 17/2/08 at 12:34 PM |
|
|
Best person to speak to is an accountant - they'll be able to advise you on the right solution for your business.
They will probably also be able to form the company for you.
ine does all my paperwork etc. and I just ring him every now and then. I even signed him up with HMRC to act on my behalf, so every leter I receive
from them (for either mysalf as a person or the company as it's own legal entitiy) gets copies to him automatically, so I never miss a trick or
a deadline.
HMRC are also quite helpful when you get started as well - they provide some good info when you start and will guide you through the various processes
along the way (my guess is that there's quite a few people who unknowingly commit tax fraud because they don't understand the process - by
helpng you along, they put paid to that excuse!)
|
|
|
tomblyth
|
| posted on 17/2/08 at 07:38 PM |
|
|
I set up in March last year , I build new houses that are environmentally friendly , first year been OK future looks bright . I found business link to
be waste of time! Kickstart and the Blythvalley action team (assume your area has an action team ) were very good. remember even if this is a second
job the profit will count as income so you'll will have to pay income tax. but if you do 1 house at a time and live in it you are not treated
the same way by the tax man! Question! are you the Darren whos dad works at Dewalt? If so catch me at the church mouse on wednesday I'll give
you some more info on how I started on the road to self employment !
|
|
|
DarrenW
|
| posted on 18/2/08 at 09:17 AM |
|
|
Wow - some great responses. Many thanks so far.
I have no intention on leaving full time job at the moment. Im in a strange position whereby we have accrued a little debt as a result of starting a
family and i have quite a good salary. House development started as a means of paying for the starting of family expenses but we are really enjoying
it.
Anyone who has done it will know its nowhere near as easy as the TV progs make it sound. Hardest part for us is the selling one and inding the next
project s we can tie in the sale and purchase. Also living in a wreck with 2 young kids so you can declare the property is your primary residence isnt
easy.
The reason for me thinking about doing it as a hobby business is that we can sell try and sell houses quicker without living in them, wife doesnt work
(in paid employment) so maybe take advantage of her tax allowance (as im in 40% heaven), and possibly maybe qualify for commercial finance rather
than trying to swing home buyers mortgages which im finding is the most frustrating and difficult part (moving house too often, dropping into rented
occasionally and time delays on getting on electoral registers is giving credit rating a hammering even though i pay regularly etc etc etc). I was
also thinking that whilst in between houses i could do smaller (weekend) projects for other people now that i have some contacts set up and trade
accounts etc.
The bit i struggle with is making the distinction between private dealings (home mortgage and bills etc) and the business side. So job 1 is read up on
the reference material you have kindly linked me to.
I probs would never have started if i knew fully what was involved.
|
|
|
JoelP
|
| posted on 19/2/08 at 09:15 PM |
|
|
i use my personal account for my business, i dont like paying a fee to the bank!
Beware! Bourettes is binfectious.
|
|
|
Jasper
|
| posted on 20/2/08 at 01:45 PM |
|
|
And join the Federation of Small Business too, you then get access to solicitors for FREE plus loads of other useful info AND free bank for ever (not
just the usual 12 months start-up) with the Co-Op.
And get yourself and good book keeper - NOT accountant, they are MUCH cheaper and will still save you ££££'s...
If you're not living life on the edge you're taking up too much room.
|
|
|
