Small Business Selling Online

[mndunne]

Hi,

I have been making ecommerce websites for companies for a few years now, and have finnally made a deal with a supplier to start buying products from him and selling them on my own online shop. I am now however a little worried about what to do, i am thinking that if i am going to give this a go it is worth doing it right there for i think it would be worth setting this up as a limited company, and althow i may not reach the 64k i have to hit to become vat registered i am wondering if this would be worth doing from day one and setting up the company as a limited company and becoming vat reg from day one, the other way i see is a a sole trader and not registring for vat untill i hit the 64k however i am not sure on the liability off selling online if some one had an accsident i no as a limited company i personally would be covered but as a sole trader it would be me personally would it not. what would be easier to set up and what would be best for me to do?

Many Thanks Matthew Dunne

[DavidT]

Hi Matthew

VAT registration and operating as a Ltd company don't go hand in hand as you appear to be implying.

VAT Registration, so long as the choice is in your hands... it depends on yoru customers, and to a certain extent your supplier and competitors. Will your customers be VAT registered, or are the individuals? Is your supplier going to be charging VAT? Do you competitors charge VAT?

I am guessing you will be best off registering for VAT only when you need to, but you need to answer those questions first so it's probably best to seek advice from an accountant.

As for the Ltd company... it depends on your situation. There is a lot to consider so you will be better off doing a search in some forums (there is a LOT out there on this), and again... getting advice from an accountant.

David Toohey

[mndunne]

hi thanks for your advice ill do that

matthew