setting up a company

[nybor62]

im thinking seriously of setting up my own company , im sick to death of subbing to companies who dont have a clue about tiling , and dont listen to the advise you give them ,its all about profit with them ,for get about the quality,

any advice would be appreciated, ive been a subby for over 25 yrs and not getting any younger

 

[Dan]

You need to speak to HM Revenue & Customs: Home Page and tell them your NI number and say you want to go self employed.

I'd chose a name and consider checking companieshouse.gov.uk to make sure one isn't currently running with the same name. Then I'd even consider (and we were discussing this the other day) getting the Ltd company of the same name and then keeping it dormant. So you'd be filing for that annually saying it's not traded and still just filling in your self assesment for being sef employed. But the day it gets a bit bigger than just you, you have the limited company ready to trade.

Speak to a couple of banks, setup 2 bank accounts, one for takings, then transfer about 25% of that figure each month to your other bank account which can pay your tax etc. Once you've offset some stuff against your takings you'll find you'll have left over cash in that account which I'd keep for rainy days or a holiday every now and again.

Grumpygrouter is a resident DJ, I mean accountant, and he will know best.

I'd get a website from mistore, and optimise it, and I'd get some reading done in the marketing forum which will give you plenty of marketing tips etc.

 

[david campbell]

You need to speak to HM Revenue & Customs: Home Page and tell them your NI number and say you want to go self employed.

I'd chose a name and consider checking companieshouse.gov.uk to make sure one isn't currently running with the same name. Then I'd even consider (and we were discussing this the other day) getting the Ltd company of the same name and then keeping it dormant. So you'd be filing for that annually saying it's not traded and still just filling in your self assesment for being sef employed. But the day it gets a bit bigger than just you, you have the limited company ready to trade.

Speak to a couple of banks, setup 2 bank accounts, one for takings, then transfer about 25% of that figure each month to your other bank account which can pay your tax etc. Once you've offset some stuff against your takings you'll find you'll have left over cash in that account which I'd keep for rainy days or a holiday every now and again.

Grumpygrouter is a resident DJ, I mean accountant, and he will know best.

I'd get a website from mistore, and optimise it, and I'd get some reading done in the marketing forum which will give you plenty of marketing tips etc.

exactly word for word what i was about to say :lol::lol::lol::lol:

top advice dan

 

[Dan]

Sounds easy: it is easy.

One thing I'd say from a business management point of view; probably the a couple of things you'll need to practice given the fact you've been doing everything else for 25 year but this. Is get into a habit of keeping receipts, invoicing customers, doing quotes professionally and on-time. And make sure you keep on top of customer enquiries. Don't leave them on the answering machine, call them back as soon as you spot there's a message.

It'll just be that sort of stuff you need to get into a habit of doing. And perhaps taking your shoes off when you go to quote and that sort of stuff as on site I'm sure you don't need to :builder2: <- you don't need one of these either for customers' houses....thankfully.

 

[Dan]

exactly word for word what i was about to say :lol::lol::lol::lol:

top advice dan

I think I've just repeated what you told somebody the other day Dave lol

 

[nybor62]

exactly word for word what i was about to say :lol::lol::lol::lol:

top advice dan

yes dave dan just got in before you:lol:

 

[grumpygrouter]

Do you work for RJW or are you already self employed?

 

[nybor62]

Do you work for RJW or are you already self employed?

i am rjw , yes self employed sole trader

 

[grumpygrouter]

i am rjw , yes self employed sole trader

Ok. What is your idea about forming a company? Is it so that you can tender for contracts yourself or for some other reason? I only ask as forming a Company doesn't really hold that much benefit (if any) for someone like you or me in the normal day to day scheme of things for tiling.

 

[nybor62]

Ok. What is your idea about forming a company? Is it so that you can tender for contracts yourself or for some other reason? I only ask as forming a Company doesn't really hold that much benefit (if any) for someone like you or me in the normal day to day scheme of things for tiling.

i was thinking of forming a ltd company , and yes to tender for large contracts

 

[diamondtiling]

i was thinking of forming a ltd company , and yes to tender for large contracts

I dont think a Ltd firm offers any benefits to you apart from lots of paperwork etc, I work on my own and bring in trusted subbies when I need to. I still tender for the large commercial works as well.

 

[grumpygrouter]

i was thinking of forming a ltd company , and yes to tender for large contracts

Dom has given the answer I was going to give Rob. You can already do that as a sole trader. Limited Companies have limited advantages now a days and you need to be sure it would be the right thing for you to do as there is more administration needed and more lgislation you need to be up to speed with.

I operate my tiling business as a ltd co. but only so I can avoid having to apply VAT - I am already VAT registered as a sole trader so the only way for me to avoid VAT was via a company framework.

 

[Pebbs]

Nybor,
There are pro's and cons of setting it up as a Limited Company. For me it was essential though, because a lot of the big contractors we deal with wont deal with sole traders. Even before they award me a contract these days, they run a credit check on us to see how we are doing. They are quite open about this, which is ok because I get someone to do the same to them! The worst part for me is the finance side, it really does my head in. I have a lady that does the CIS, and payroll, the vat, and the expenses. Then I have the Accountant who keeps an eye on things. There are times when I have quotes building up, and the Accountant wants some information for xyz...Give me a break! Payment applications take forever to do on long running contracts, then you have to keep an eye when you have to apply for any outstanding retentions. This said I support you wholeheartly in having the gumption to do it. Once you have ironed out the legal stuff, you can go for these bigger contracts. For your own piece of mind get yourself a great accountant who is geared up and understands construction, and a book-keeper who is on the ball.

Pebbs

 

[Dan]

Would it still be worth keeping dormant to protect the name? If somebody set it up afterwards you could be arguing over who used the name first sort of thing?

Orrrrrrrrrrrr just use your name as the company name or something?

 

[nybor62]

thanks alot for all your input much appreciated