wanting to start up

[aeg]

Hello everyone
I have just joined and am new to this so please go easy! I am currently a designer in full time employment. However, I am looking to exit and in 6 months and go alone, not the best time to do that I know, but I guess there is always space for a good designer, if marketed correctly. In the 6 monts leading to my exit I am saving, networking and getting my new busines mailing database up to date. I need to know the best process to go about the start up - register as a sole trader or ltd? Shall I wait to register until I jump ship or do so now? Logo, branding and website are currenly being finalised with a new business mail campaign about to go out in the next month. The world o new business start up seems very daunting - does anyone know of grants or low interest loans that I could be eligible for? If so, surely I would need to register the company -can that be done whilst in fulll time employment considering the new business is in direct competition to my current employer! Guess I need some all round help - any suggestions? Much appreciated.....

[Indizine]

You have lots of good, basic questions - can't see where you live but contact your nearest enterprise agency (www.nfea.com) who will fill in all those blanks. ]

Only an accountant could advise you whether to go limited or be a sole trader as various factors are involved that could determine suitability for either. But there is no need to register as a business this early unless you are trading. You have 3 months to inform HMRC of trading, as from your official start date, so there is no rush, unless you are doing a bit of part time work to build up to full time, in which case decide which to go for then get registered as above, within 3 months of starting.

The enterprise agency (and also try Business Link) will know what funding is available in your areas, as it is almost entirely geographical based for start-ups.

[aeg]

thats great thanks -will check those links and probably come back with more questions!!

[accountantpete]

I personally think it would be best to start off self-employed and then register as a limited company somewhere down the line when the profits and potential tax savings justify it. Company's have a stricter rule book to follow and are ususally more expensive to administer re accountancy fees etc.

The only other main advantage of a company is limited liability - which may or not be of importance in your case.

However you would have to register the company in your name - so there is an outside chance that your employer may find out about it unlike going self-employed.

[Indizine]

I've never heard of there being a general consensus - first in my lifetime of start up and forum experience have I ever heard that said before. Most accountants want to ask a set of questions, tot up some figures etc before advising which might be best.

Agree other points are to be considered, but either what the OP is doing is allowable (employment contract rules) or it isn't and if it isn't allowed then you shouldnt be doing something to hide it. And if there is nothing in your contract that says you cant do p/t work or work with your clients when you do trade, then you can trade openly. Obviously if they say otherwise then it is better you work to the rule and avoid any consequences. it's just not worth it.

[accountantpete]

I've never heard of there being a general consensus - first in my lifetime of start up and forum experience have I ever heard that said before. Most accountants want to ask a set of questions, tot up some figures etc before advising which might be best.

Now amended the offending phrase.

IGMC

[Indizine]

IGMC? offending phrase? It's too early - give me a clue