Start up as a sole trader

[Hodge]

You could go in as a partner, I would advise that your son needs to learn the ins and outs as much as you do or else he may never grasp running the company. Before getting trucks etc you would be best getting customers and building up rather than buying gear and not having the work for it. Does you son have any experience in working in tree work?

[leswold]

Hey Tony. I'm in much the same situation, with 2 sons who are employed as arborists, climbing etc. I'm semi ret with little exp of tree work so did the basic cert for 'chainsaw use/felling small trees' to be safe as their groundie & generally be their dogsbody. We were advised by an accountant who said to reg as partners so we are legal for private work. Waste carrier lic & p/l ins in place, just saving for a tipper but are hoping that they will be able to go it alone once we've got a reputation. Good luck.

[Inoff the Red]

There are lots of issues when considering starting up including the overall risks associated with the business you are starting.

A partnership is one way to do it but don't forget that partnership liabilities are joint and several and, ultimately, are personal liabilities. So if, for whatever reason, you chop down a tree that crushes someones house/greenhouse/car and the business is sued a claimant could pursue any damages claim against any or all of the partners and your personal assets could be at risk.

The easy way of avoiding this is to trade through a limited company where, if the worst happens, only the assets of the company are at risk.

There are also tax advantages to trading a profitable business through a limited company.

[t0ny0k]

Thanks for all your advice, plan is to start up small doing mostly garden maintenance with some small tree work,he will probably sub contract himself out once he has completed his climbing and rescue and climbing with a chainsaw courses. With myself working with him I' think it's best to start building your business as soon as you can,you can always turn down work that you are not ready for, or sub in the skills.

[steve@crown]

No need for larger than 3.5t....an ifor Williams is the best choice of trailer...very strong. Most firms are now going down the 3.5t route...no inspections or tacho etc...even if you buy two vans it will work out better and have you both driving...a tipper with a trailer can carry roughly the same as a 7.5t.

[Stihl Unknown]

For a sole trader you need a waste carriers licence? Even for chip and logs? I tip off at various farms, I never charge for the tip as its doing me a favour till I have a yard.

 

What is the license all about and does it cost?

 

For the main thread, The dad should register as a sole trader also, then if he does get paid eventually he can be legit.

 

If he becomes a partnership then he can take drawings(thus not needing a steady wage). Don't forget that Drawings are part of the businesses' taxable PROFIT, so you need to account for the tax ready for the tax year end.

 

Just aim to cover your overheads get the first year sorted and hope for the best..... that's what I'm doing

[dan494]

Yes but it's free for moving wood/ woodchip, takes about 5 minutes online, really can't see any point in it as you don't get a certificate and there's no test or anything but helps you stay legal

[AA Teccie (Paul)]

I'm presently helping my son who is 24 to start up as a sole trader. my question is if I work with him what is the best way to set up his company. I plan to work with him part time as free labour,should I just class my self as a sub contractor,an employee or maybe a partner as I have a financial interest in the company.

I understand he will require employees insurance , just want to stay on the right side of the law and the tax man.

 

Whilst I'm sure there's far more up-to-date stuff / guidance out there a quick Google lead to this which is quite informative Incorporating: pros and cons | This is Money

 

Regarding health, safety and environmental compliance, and industry good / best practice, you could take a steer from the ARB Approved Contractor SCheme standards , see Become an ARB Approved Contractor

 

Regards, n good luck...n take care out there, (good) experience is key

 

Paul

[Tree Surgeon Insurance]

This might help ;

 

Tree Surgeon Insurance : TSINS