A friend and I decided to start offering cheap hosting. We bought a reseller account from a reputable company, registered the Domain Name, created a brand etc
Whilst designing the website, I got to writing my ToS agreement. This got me thinking (as I am into some aspects of business law), do we need to register as a company/partnership via Companies House?
I was reading the website (just in case), and it says:
1. Where must the limited liability partnership name be displayed?
Every limited liability partnership must paint or affix its name on the outside of every office or place in which its business is carried on - even if it is a member's home. The name must be kept painted or affixed and it must be both conspicuous and legible.
So they expect me to stick a sign up on my family home?!
So, my questions are, do I need to register as a limited liability partnership (or other) and if I do, why do I have to put the partnership name on my house.
Yes you are supposed to put the name outside, a small plaque. After all you are claiming your home address to be this companies head quarters.
Secondly you do not have to become Limited. If you choose to remain as a sole trader, you declare on income tax returns. Any business debts are your debts too. So your car/home etc are at risk against any borrowing or obligations.
If you become a Limited, your assets are separate from the business, and untouchable. But then you have to pay £20 to become limited, and pay again in each year for an registered accountant to compile balance sheets / profit & loss accounts.