A tad more business stuff
Well since my post in January about the business side of things, nothing has really been done. We still have yet to register a business or decide for definate on a name, but I have been looking more into the business structure and what needs to be done to run it.
I think for now we are definately going to have a limited liability partnership structure as this is relatively easy to setup and run, and also has a number of benefits such as abbreviated accounts can be sent in rather than a full set. I also found out that as we are handling personal information we will need to register with the Information Commissioner’s Office under the Data Protection Act and pay £35 per year.
As for a business bank account HSBC looks good. They have an account that is near enough free (they only charge you for cheques and some other things I doubt we will need) and also provide online banking. We will probably end up going with Paypal for their merchant tools, to start with, as it looks relatively easy to setup and isn’t too expensive.
Another thing that I should probably note is that at the moment I am not really thinking about having anyone else (i.e. solicitor or accountant) to help with the running of the business as we start out. Having looked over all the information it doesn’t seem as difficult as I first thought, and I think managing the business side of things should be rather simple as we will have very few different things we are paying for or being paid for.
Anyway, for now nothing is set in stone, and we still have an app to finish before we need to set up a business so I shall let you all know how it turns out in due course.
An LLP sounds like a good idea and does get around the need to file accounts in the same fashion as a Limited Company. I’m no expert on it though.
Also, I think the PayPal option may get you around the need to obtain a merchant account (not sure on that one) which is handy as they can be hard to get. Once you build uo some trading history with PayPal, I’m sure the banks will look mre favourably on you if you wanted to apply for a merchant account with them.
Nice work!
Comment by Paul — 24th of June, 2007 @ 8:39 pm
I’d give Business Link a call (http://www.businesslink.gov.uk) - should be one in your area. Website has got lots of useful stuff in it which may be of interest…template business plans, how to do the books, marketing, etc. Also worth talking to one of their advisers (usually give you a free consultation). They may pick up on any areas you’ve missed.
Anyway, LLP is a great idea for a small business in your situation. You don’t carry personal liability, but you still get some of the benefits of incorporation without the hassle. Moving from this to a fully Limited co. isn’t too much of a leap when the time is right.
Comment by Rob Mason — 25th of June, 2007 @ 12:58 pm
Thanks for all the info guys, we will be looking into it all. We’ll let you know of any progress!
Comment by James — 27th of June, 2007 @ 6:04 pm