Hi, at the moment im just looking into becoming a reseller, and i was wondering the legal requirments for it in the UK, would i have to register as a company? also where would i stand on paying VAT? thanks for your help, and if this is in the wrong section can it be moved to the right one. thanks
1. Sole Trader
3. Limited Liability Partnership
4. Limited Company
Each of the 4 choices listed above is progressively more involved to set up and administer, but may offer more in the way of advantages (such as 'limited' status etc.). I'd say that most resellers are Sole Traders.
VAT registration is only required if your taxable supplies are going to be more than £56,000 a year. However, it's a bit more complicated than that if you're going to sell to customers abroad or purchase supplies from abroad.
In terms of legal awareness, it's worth reading a bit about:
- Trade Descriptions Act 1972
- Sale of Goods Act 1979
- Supply of Goods and Services Act 1982
- Data Protection Act 1984
- Consumer Protection Act 1987
- Price Marking Order 1991