Getting Started Tasks

I made a list of things I wanted to do before starting my attempt to earn extra income. Time will tell if the list is complete or contains stuff I didn’t need to do. Here I’m sharing my getting started tasks.

I intend to post a follow up of lessons learned in a couple of months.

Before creating a website

Create a limited company – An expensive route to take, but I wanted the financial protection a limited company would give me. Forming a limited company online yourself is trivial at https://www.gov.uk/limited-company-formation/overview. Or there are companies that will do it for you. I used http://www.1stformations.co.uk at the cost of £13.19. I’m hoping to get cashback setting up a business bank account via them and you get a free .co.uk domain.

Financial Records Spreadsheet – Keeping good records is essential, so I just downloaded a decent template via google.

Open business bank account – Just as keeping records is essential, keeping the money separate is a good idea too.

Company Email – I wanted a separate email account to keep things separate.

Find an accountant –  An essential for a limited company. From what I’ve read, I might be able to file my annual returns myself, but it would be a lot of work. I’d rather spend those hours elsewhere. I haven’t actually done this yet, which might prove to be a mistake.

Setup website

Register a domain – I did this through names.co.uk as I got it free with the company registration, but there are loads of options available.

Buy site hosting –  This site is on Tsohost (affiliate link) and I couldn’t be more impressed. I’ve asked several “stupid” questions using their ticket system and have no complaints. If you’re looking to build a site, I definitely recommend them. 

Install WordPress Themes and Extensions – Part and parcel of WordPress are extensions. I’ve added one for caching (speed up the site), backups (essential) and SEO so far.

Google Analytics – This is simple to setup via a WordPress extension.

After website setup

I haven’t done any of this yet, but this is about getting the word out there that the site exists.

Create a Twitter account

Create a Facebook page – not sure if I’ll do this, but it’s an option

Marketing – no idea how, but definitely need this!

Anytime

Register for Self-Assessment – As a director of a limited company, you must register for self-assessment. Thankfully that’s easy at https://www.gov.uk/register-for-self-assessment/not-self-employed

Register for Corporation Tax – Another legal requirement. HMRC will send me a UID to register. I haven’t got this yet, so can’t say.

Conclusion

Quite a long list but that covers everything I thought of. Please let me know in the comments below if you think I’ve made a mistake.

2 Responses to “Getting Started Tasks”

  1. Just to jump in. Setting up a limited company can be double edged sword. If you’re looking to make extra money online setting up as a sole trader has a whole heap of benefits around making it easier to offset any losses against the income from your day job (think tax rebate) as well as making it easier to push through operating expenses such as home office. You’re also more likely to need an accountant to file a tax return and will still need to do two sets of returns for your company and personal, which will increase your accounting costs. My best recommendations to people facing the same choice is to focus on making some money, when it gets to a sufficient level where there are tax gains to be had in trading through a limited company then switch. Business accounts generally come with bank fees too.

    Unless you’re extending yourself into investing a large amount of capital or could lose a substantial amount then protecting yourself is much of a muchness. Making online from affiliate income, or making money on advertising in a blog isn’t going to see you sink.

    I’m not an accountant but have been in business for over 18 years. You should speak to an accountant about the best way to structure your business. Just make it clear how you plan to make money and be realistic about how quickly that will happen. I think any decent, honest accountant with your best interests at heart would agree with the above. At least I hope so. 🙂

  2. You’re absolutely right about a ltd company being expensive and is almost certainly unnecessary.

    The business isn’t just for this little project so was the “right” choice at this moment in time. I might add a disclaimer or point people to your comment to make this clearer.

    Thanks for taking the time to make such a fantastic comment.

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