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Registering as a legal UK company? *confused*

Stan

Stan

New Member
Ok, this stuff is really confusing me.

I am wanting to register 3rd Rock Hosting as a legal company in the UK. Over the last few weeks i have been having a look into it but it is all so confusing. I cant understand any of this stuff.

Was wondering if anyone had some advice or could point me towards some resources. I know i should probably speak to a solicitor or something along those lines but at the minute, that is out of the question due to funds. I have never had to do this, i have always worked for other people, not for myself lol

The main things that are confusing me are as follows:

  • How and where do i do this stuff?
  • Do i need to register as self employed before i can register a business?
  • I am situated in the UK but my servers and customers are in the US, how does that affect the registration? I mean, do i have to pay UK AND US taxes?

...sigh. To be honest, the whole thing is just really doing me in. Theres so much i don't understand.

Any advice/resources would be MUCH appreciated.
Thanks in advance :)
 
Best person to ask is craig, he was advertising some sort of company that done registration for you which was quite a good offer.
 
Stan. Get a lawyer, they will take care of everything for you.

But please be aware, registering a company in the UK wont cost you $200 like it does in the US, and we in the UK suffer from Sales Tax. Meaning you HAVE to take 17.5% extra, even if they are in the US, they can then claim that 17.5% back from the UK government.

If you have £300-£500 to blow, and a ---- load of clients to lose (You need to charge tax for existing clients as well), go for it.
 
Confused Richard, you can have a Ltd registered for under £40, it's a bit more (£50 processing fees if I remember) if you go to a Companies House office with the paperwork. Is the 'Sales Tax' you mention V.A.T.?

Do agree have a chat with a solicitor that deals with business accounts - but they can cost you more than you would like to put out as they flannel through it (unless you have a friend, or at least one that will do a free first session, some do so you come back to them).

There are options Stan, is there going to be just one of you in charge? If so your a sole trader and stay as such (a ltd needs min 2 persons, director and secretary that cannot be the same person), there is a better option (adopted by the legal/financial professions) LLP, Limited Liability Partnership.

Being a Ltd in the UK means registering with IR (now Customs & Revenue) and means you are liable for corporation tax levels, and PAYE/NI contributions for any employees in the UK. V.A.T. registration is compulsory for turnover equal/over 65k/year calculated quarterly.

But basically is it worth it to you? You can get some lines of credit based on the fact your a registered company but your share capital normally comes into account as to how much. Again would it be worth it?

For company formations 'off the peg' have a look at these folks http://www.dolphinformations.com

Not saying they're the best but have had dealings with them and they're pretty straightforward and helpfull. Plus their site has loads of info :wink2:
 
Thanks for the info everyone!

Decker, when you say 'is it worth it to you' are you saying i don't have to register as a business? I always thought that i would :S Not sure.
 
Are you running the host on your own?

How old are you?

You need to get registered as a self-employed.

If you have more than 1 person in your business and are earning more than a couple bucks a month then yes you need your business name registered and formed as a company.

UK, you also have to deal with National Insurance contributions, don't forget about those.
 
James said:
If you have more than 1 person in your business and are earning more than a couple bucks a month then yes you need your business name registered and formed as a company.
Click to expand...

Bollocks James. Sorry but it is.

Stan you can run as a sole trader, you just do your own tax return (it's not that scary).

No probs Richard, I do hate those leaches :wink2:
 
So i just need to register as self employed?

What if i have a few people helping with support/sales? Would i then have to register as a business?


Thanks a lot! You have really helped me understand.
 
Decker, If you say it's bullocks, say what is bullocks. I don't see what is wrong with it, just your bullocks.
 
Stan said:
So i just need to register as self employed?

What if i have a few people helping with support/sales? Would i then have to register as a business?


Thanks a lot! You have really helped me understand.
Click to expand...

You would have to contact your local government office regarding that. I know in the USA an employee has to make like $600 a month to be liable for taxes and such, so if they are making less than that I don't have to report them at all.
 
James said:
Decker, If you say it's bullocks, say what is bullocks. I don't see what is wrong with it, just your bullocks.
Click to expand...

This is! Totally wrong info.

If you have more than 1 person in your business and are earning more than a couple bucks a month then yes you need your business name registered and formed as a company.
Click to expand...

Stan, if your 'employing' others employ them on a self employed basis, then they have to look after their own tax situation, but do keep records of their details (especially those in the UK) and any payments you make to them.

Just contact your local tax office and explain you are starting as a 'sole trader' self-employed, they'll send out the forms and info you need to register with them for tax.
Getting a cheap and chearfull accounts package might help you but it's just as easy to do in a spreadsheet, then you hand that over to the accountant at year end for your returns (you can do it yourself online if your accounts are straighforward and you understand them).
But again, get an accountant anyway, usually you'll get the first session of advice free and ask them for a year end returns cost (as in what they will charge you for doing it).

Also you can right off a load against tax to reduce your tax bill and only gross profit gets taxed, that is where you should visit the HMRC web site and get the latest info (it changes every budget, and often inbetween) on what you can claim back :)
 
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