[Russ_Turner]

Evening all.

I am about to start selling digitally delivered and paper products from home. Issues such as security and data protection for example I already have covered. What I cannot seem to get my head around is the real benefits between being registered as a sole trader or a limited company. I understand that as a sole trader my house could be taken from me to cover my debts as an example, but on the other hand I do not see any major benefits jumping out at me for being a limited company. I will be working part time, the business would have little in the way of assets and will not be costing an arm and a leg to set up. Am I right in thinking that sole trader is right fo me? If yes then what is my next step?

Also. Say I have this small publishing business operating part time, but wish to start another business. (I have called my business A1 Publishing for example.) How does the naming / branding of a second, totally different business that I have started affect me legally or as far as Companies House is concerned. Do I regsiter with them the name of my first business only, the name of my business as a whole or my name?

Any advice for this noob wil be greatly received, thank you. I am already self employed BTW.

[DavidT]

Hi Russ

Sole Trader is probably a better choice for you unless you have high earnings from the business and can get some tax benefit from Ltd incorporation.

The other consideration, as you pointed out is risk - but this mostly depends on the extent of liabilities of the business. If you are taking out a high level of credit or loans, or you're providing a product or service that could put you in a position of liable for damages then you might also consider Ltd.

Talking about businesses (not Ltd), these aren't registered with Companies House so you needn't worry about that. As far as I am aware, you can run these separately under different names and simply notify HMRC within 3 months of commencing trade.

[Rhyemba]

Hi Russ,

Three sites I would advise you to have a look at while you are starting up this business would have to be

hmrc.gov.uk
businesslink.gov.uk and
hse.gov.uk

You should find some helpful information and free fact sheets

Best Wishes

Rhyemba

[tax-sorted]

also go to my website www.tax-sorted.biz and download loads of free information

[Russ_Turner]

Thanks to all for the replies, really appreciate it.