which type of business is best for my situation?
Hi, I am hoping to buy bulk beauty products and re-sale them individually for profit. I am only 16 though. My mum has said she wouldn't mind if I used her bank account to get an amazon and eBay account. The youngest you have to be is 18. I am really keen and, if I do say so myself, more than competent at making this successful. I would like to know what I should register my business as. a sole trader? a partnership, my mum will get 10% of the profits. What's the best type of business where my mum wont actually be doing any paperwork or anything at all. that will be me she will be a shareholder though. is this legal?
- MatthewLv 66 years agoBest answer
If your just selling it on Amazon or eBay I'm not if that counts as a business or website as it's someone elses website. if your going to set up a business you may want to consider your own website.
I don't know about re-sale as some products you can't sell individually without the companies permission. I would contact HM revenue or the company and they might supply the beauty products to you and you give them some of the profits in return to the goods. I think you also need a licence if your selling products .
If you are a sole trader the business is in just your name. A partnership would be 2 or more people and those 2 people have the business in both their names. The bad thing about both is you have unlimited liability, which means if the business fails you or your mum (if a partnership) will have to pay all the money until the debt is re-payed, which means you could your possessions or house if it's alot of money.
A company which you want is a private company where you can give shares to your mum or anyone you want. The best part of a private company is you have limited liability meaning if the business fails you only lose the business and nothing else.
- ?Lv 76 years ago
Hannah you can NOT legally have an ebay account until you are 18. Your mother would have to have the account though you would be running it in the background. Read ebay guidelines.
The reason is that any ebay transaction becomes a legal contract between the seller and the buyer and a minor cannot enter into a legal contract.
Before you [and your Mum} dive in you need to do some research on the costs associated to selling. ebay and paypal between them get 15% of an items total sale price including p&p and you need to look at the carriage costs by Royal Mail ~ they have gone up a lot.. This may seem obvious but with fairly low cost items the commission on the sale and the carriage can make the item more expensive to buy from you than from Boots or the like. You also need to realise that if you send goods on normal Royal Mail services that do not require a signature on receipt you will get lots of dishonest people saying they did not receive the item and ebay would instruct you to refund their money. To use a Signed for Service costs an additional £1.10 over the normal postage.
You are too young to register a business.
- Jan409Lv 76 years ago
Your best bet is to be s sole trader
Sole traders do not have shareholders
You'll get all the info you need from the HMRC website, under self employment