Neill was interested in setting up his own business, he wanted to work for himself and he had seen a furniture range that he liked and he could see it had potential in the UK being Scandinavian, a little more upmarket than IKEA, with excellent quality woodwork and finishes.
Neill’s background is not in law, tax or accountants and so he didn’t know what was the best business structure to use.
A colleague suggested that he contact Clearways Accountants to take advantage of a free initial consultation.
Neill is based in locally in Dorking, Surrey and when we met up we discussed his business plans, his financing requirements, the vision for a new website and the customer base he was targeting. The flat pack furniture is purchased online and assembled by the customer.
Neill and I discussed the potential liabilities that could arise through online selling and self-assembly of furniture and we concluded that he would be better to operate his business through a limited liability company. Although Neill had purchased insurance this structure would effectively limit any potential liabilities to the share capital and the profits in the company.
We did discuss the possibility of being self-employed but with a young family and a home, we felt unlimited liability, even with business insurance, was not a sensible alternative.
Clearways Accountants were able to set-up the company, ANA Furniture Limited, that week and the banking arrangements were made over the next week. The new flat pack furniture ecommerce website took a little longer but is now up and running and taking orders.
Now the company is trading we have enrolled Neill in his own company’s payroll and ANA Furniture Limited has taken out our single person limited company package. This allows Neill to focus on growing his business while Clearways Accountants run his payroll, prepare the company accounts and tax return, complete the annual return and prepare all the board resolutions and vouchers for dividends.
As you can see business structure may not always be determined by tax, it’s always important to look at the bigger picture.
If you are thinking of starting your own business and you would like a free consultation then please call us or complete the contact form below.