tech-company, legal, saas, entrepreneurshipThis is the first product that I have ever created that I am actually going to market with. It’s almost ready; I’m working to smooth out some rough edges but thats it from the product point of view.
Now, I’m in UK so am a bit unsure about what other first time entrepreneurs do here but I was wondering if I could launch the product first under my personal name and then when it starts actually making some money, move to a limited company. Does anybody more experienced have any suggestions? I’m also unsure about legal stuff like T&Cs and indemnity insurance that someone mentioned to me that I must get before go live.
I’d love some thoughts on this. Also, not sure if it matters legally but I’m working part-time on my startup as can’t really afford to leave my current job without having solid grounding with my product.
Note: I have very limited funds and most of them have gone towards infrastructure costs as the product that I’m building is a SaaS platform.
Thanks in advance!
I wish you good luck for your step toward entrepreneurship.
If you have an idea or product and you are looking for financing as well then it is good to incorporate your business in form of a company or corporation.
There is no need to quit your existing job for this purpose.
As you in UK, you can have your own company in few hours by spending a few Pounds. Check below link go through it. All procedures are explained very clearly.
https://www.gov.uk/limited-company-formation/overview
You can also reach out some consultant who can help you setup this for you.
Second option for you is to setup a C Corporation in USA or Extra Provincial Company in Canada.
For these countries each state has its own rules but all is possible online and through mail.
Let me know if you have questions.
I am UK based since 1994 so I hope I can offer some advice.
Read Points 1,2,3 and 6 as they apply to your situation. [https://startups.stackexchange.com/a/8585/7909][1]
Creating a UK Limited Company is not complicated or costly. You can create one for under 100GBP.
(EDITED) A UK Limited Company can be owned/managed/run by one person (when I started, in 1994 the law required two people but this changed in 2006). I am Managing Director, and a friend who is better at book work than I am is my Company Secretary. He receives a token/bonus once a year for my appreciation for his help and the taxman is fine with that. It should be someone you trust, because they represent the company, just as much as you. It can be your life partner or other relative.
Having the support of a good pen pusher (number cruncher), if not a good accountant should not be under estimated. There is red tape, and the tax man will not take kindly to your misunderstanding. I would not have lasted this long without having the help of a good friend as I am at best poor at doing paperwork.
Don’t underestimate points 1,2,3 and 6 I have made and reference above. Any unintentional mistake you make risks your credit rating, your home and your future (and your family future?). It will also reduce your stress, allow you to concentrate on growing the business. Think for example, if your product is going to be used by consumers (ie a device that a kid could find and choke on, or made of poor quality where accidental misuse could injure someone) then the law could think you cut corners for profit. You could be fined, or jailed (I recall a BBC news story of two directors of an outdoor kayak company being prosecuted and jailed for manslaughter when the law ruled they inadequately supervised tourists in the water, some who drowned in accident despite wearing life belts).
A good accountant will also help you claim back the VAT you paid on any expenses related to product development during the past 6-12months. Thus, if you think you spent 5000GBP this past year when making your product, a 1000GBP will come back to you, which would in effect, pay for the Limited Company and first year of an accountant.
For insurances, consider Hiscox (search for them on the web) and while I despise much of UK banking, Barclays adverts on the radio do catch my attention and are worth consideration.
I wish you the very best of luck!
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