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My partner and I are looking to start a company in the UK, but we have some questions. So if anyone would like to chime in please do! 1) Are those 1-2-3-Company! or whatever the websites are called that automate and help you form a company worth it, or safe? Especially if we're talking about selling digital goods only. One brags about selling (for an extra 75 pounds annually) a 'prestigious' company address, or something like that, which just reeks of scam. Or if not scam just generally rip-offery. 2) Would we need an accountant? Are the taxes and all that too difficult for us to handle alone? What could we expect (ballpark figure) to pay for an accountant? 3) If anyone has experience with Kickstarter, how are taxes handled for that? Again would an accountant be helpful? 4) We read something about no VAT if total income is under 81k pounds annually. Is that different than "corporate taxes" we'd have to pay as a company? 5) Lastly we're thinking of forming a Limited Liability Partnership, would that be the best way to go? There would be only 2 employees, but it'd be nice to have the option to add another (or more) down the line. Thanks folks!
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Aug 16, 2014 20:06
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| # ? Apr 25, 2024 01:36 |
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1. Those companies are fine; they've already set up companies so when you pay the £75 or whatever they change the name and sign it over to you. You can save cash by doing all the paperwork yourself, which takes longer but is cheaper. Many accountants provide a similar service. 2. Depends how well you know the tax code. When I was freelancing a few years back I paid an accountant and man, they were worth every penny. I saved far more in credits/rebates etc than I would have going it alone as I don't know the ins and outs of the uk tax code. That said, if you do then it might be worth saving money and doing it yourself. Sounds like you don't though, so i'd recommend paying someone. Freelance friends of mine pay as little as £70+VAT per month which hopefully isn't the end of the world for you. I was paying £125 which was at the higher end of the range. 3. Dunno 4. VAT is different to corporation tax. When I was doing this stuff I registered for flat rate VAT and it was by far the cheapest. Dunno about you though; you'll need to study the tax code or pay an accountant to know what is best. 5. LLC is probably more flexible than LLP. More paperwork though. Ask an accountant.
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Aug 18, 2014 22:08
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Thank you!
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Aug 18, 2014 22:25
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Don't spend too much money before you start making money. If your game is still in development you don't need to do any of these things yet. If it were me I wouldn't bother spending any money until I'd made at least enough to cover those expenses. I'm not sure where you're at in the development process though. Are you in the "I HAVE THIS GREAT IDEA FOR A GAME!" phase? Or the 1-2 months away from release phase?
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Aug 18, 2014 22:40
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Bugamol posted:Don't spend too much money before you start making money. If your game is still in development you don't need to do any of these things yet. Sort of between those two.
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Aug 19, 2014 08:24
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Hey folks, this is KiddieGrinders partner.Dakha posted:2. Depends how well you know the tax code. When I was freelancing a few years back I paid an accountant and man, they were worth every penny. I saved far more in credits/rebates etc than I would have going it alone as I don't know the ins and outs of the uk tax code. That said, if you do then it might be worth saving money and doing it yourself. Sounds like you don't though, so i'd recommend paying someone. Freelance friends of mine pay as little as £70+VAT per month which hopefully isn't the end of the world for you. I was paying £125 which was at the higher end of the range. 2. This actually doesn't sound too pricey, could you refer me to their accountants or the other way around? dancingpenguinsa@gmail.com 5. Yea, this is hopefully something that will be made clear after some counseling. Bugamol posted:Don't spend too much money before you start making money. If your game is still in development you don't need to do any of these things yet. I agree with you entirely, the expenses we have now are for promotional art and business setup. Both are needed for a crowdfunding campaign. What we need the crowdfunding money for is a character artist, otherwise our development will sort of stall in a few months. So the problem is that we won't be able to make any money without spending money. However we are not just throwing money around us or whatever, we can both survive losing the money involved in this stage of the project.
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Aug 19, 2014 10:41
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| # ? Apr 25, 2024 01:36 |
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As far as I remember the Government (Might include local government) was looking to promote this kind of business in the UK if you locate in certain areas. Look into it, usually means free money\office space\professional advice or something similar.
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Aug 19, 2014 19:01
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