| Bank accounts, stationery and other matters |
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Opening a business bank account is very important. It does not make any sense to try to bank money from customers into a personal account. You must have a separate bank account which is used exclusively for business. Money is then transferred from that bank account to your private account when needed. To open a business bank account will usually require a meeting with a bank manager. If you take cash or credit card payments from customers then you must discuss this when opening the account. Generally you should not need a company credit card. If you are operating as a limited company and have a company credit card then you will need to disclose all of the credit card transactions on a form P11D unless a dispensation is in place. Finance for your business is a separate question. If you require finance you may choose to approach your bank about overdrafts, loans or government backed loan schemes. It is possible that you may choose a different bank for your finance. Any finance is going to require the investor to be confident in getting their money back. In the case of a start up business this often means taking security on your house. If you are contemplating taking up any form of finance you should take professional advice. Insurance is very important for all businesses. You may need public liability, professional indemnity and employers’ liability insurance. You may also need general business insurance to cover assets, stock and valuable information. Insurances such as business interruption, medical insurance and life assurance can also be considered. A reputable insurance broker will be able to provide further details. You will need to comply with the Data Protection Act if you store contact information on a computer. Details including the notification procedure can be found at http://www.ico.gov.uk/. Note that this requirement will also covers manual filing systems since 24 October 2007. Your office arrangements will depend on your type of trade and circumstances. If you are trading as a single person business then a mobile phone, diary and business cards may be all that you need. Of course many businesses require far more in terms of basic office set up. There are many options available regarding telephone systems, numbers and answering services that you may need to research. A postal address is vital for all businesses. Limited companies have some additional requirements. All stationery, forms, emails and websites must include the company name in full, the place of registration (eg “England and Wales”, there are various options on this), the company number and the registered office. The company name must be visible on the outside of all places of business. Links to external pages (open in a new tab or window) |
Starting a business requires you to be organised and methodical. In addition to forming your business plan, deciding on using a company or not and registering with HMRC there are a number of formalities to deal with.
