Do I have to register my business when starting off? (UK)

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Uni-Student109
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#1
Report Thread starter 8 months ago
#1
Hi
I haven't started doing dropshipping as I am confused about what to do beforehand in the UK
I am planning to do eBay dropshipping, but I am wondering if you have to register your business?
If you have to register how do you do it and what website do I use to do it with?

Also, do you need to register your print-on-demand business as well?
Thank you
Last edited by Uni-Student109; 8 months ago
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Reality Check
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#2
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#2
(Original post by Uni-Student109)
Hi
I haven't started doing dropshipping as I am confused about what to do beforehand in the UK
I am planning to do an ebay dropshipping, but I am wondering if you have to register your buisness?
If you have to register how do you do it and what website do I use to do it with?

Also, do you need to register your print-on-demand business as well?
Thank you
Sorry this doesn't make much sense. What is 'dropshipping'? What do you mean by 'your print-on-demand' business. Register for what? With whom?

:iiam:
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IshyDaFishyyy
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#3
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#3
Firstly, good luck, dropshipping is extremely hard because most of the items you can sell from Aliexpress, Wish, or DH Gate, etc are already on eBay.
Also, specific sellers will not agree to dropship and will likely put your name and the price on the product.
As you're doing it through eBay, you won't have to register it as a business.
With respect to the print-on-demand business, I guess you mean T-shirt printing? Or something along those lines. I am unsure but those kinds of businesses are much harder to do and instead of looking to go supplier straight to the buyer. I would suggest going supplier -> you -> buyer. Especially as services like Shopify which auto print t-shirts are extremely expensive especially if you start small.
Last edited by IshyDaFishyyy; 8 months ago
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Uni-Student109
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#4
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#4
(Original post by IshyDaFishyyy)
Firstly, good luck, dropshipping is extremely hard because most of the items you can sell from Aliexpress, Wish, or DH Gate, etc are already on eBay.
Also, specific sellers will not agree to dropship and will likely put your name and the price on the product.
As you're doing it through eBay, you won't have to register it as a business.
With respect to the print-on-demand business, I guess you mean T-shirt printing? Or something along those lines. I am unsure but those kinds of businesses are much harder to do and instead of looking to go supplier straight to the buyer. I would suggest going supplier -> you -> buyer. Especially as services like Shopify which auto print t-shirts are extremely expensive especially if you start small.
Thanks for the advice and response
with regards to your question: "I guess you mean T-shirt printing?" yes it is T-shirt printing but you make the t shirt designs and the company prints it for you and ships it to your customer if they buy your t shirt design
Is there a way I can find out whether you need to register a print on demand buisness?

Also doing a print on demand buisness on my own would mean I would be a sole trader right?
I have read that: "You need to set up as a sole trader if any of the following apply:

you earned more than £1,000 from self-employment between 6 April 2020 and 5 April 2021"
so would that mean I would only need to register the print-on-demand business if I was earning that much during that time period?
Last edited by Uni-Student109; 8 months ago
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londonmyst
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#5
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#5
It depends whether you are doing it as a hobby or small sideline enterprise and how much money you expect to make per month/year.
If it is only a hobby there is no legal requirement to register.
That said, it was very hard to make significantly high profit or turnover from ebay dropshipping.
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username4899406
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#6
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#6
(Original post by Uni-Student109)
Hi
I haven't started doing dropshipping as I am confused about what to do beforehand in the UK
I am planning to do eBay dropshipping, but I am wondering if you have to register your business?
If you have to register how do you do it and what website do I use to do it with?

Also, do you need to register your print-on-demand business as well?
Thank you
If you are doing it as a self employed individual then no need to register , you only need to include when doing a tax return
If you wish to start a company, then you would need to register with companies house
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Uni-Student109
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#7
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#7
(Original post by WazzWazz98)
If you are doing it as a self employed individual then no need to register , you only need to include when doing a tax return
If you wish to start a company, then you would need to register with companies house
If you don't mind can you explain what a tax return is?
BTW when you do a business on your own does that count as starting your own company?

If I intend to do ebay dropshipping would I have to create a ebay business account for this?
Last edited by Uni-Student109; 8 months ago
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username4899406
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#8
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#8
(Original post by Uni-Student109)
If you don't mind can you explain what a tax return is?
BTW when you do a business on your own does that count as starting your own company?

If I intend to do ebay dropshipping would I have to create a ebay business account for this?
1. You must pay tax on your earnings above a certain amount, this varies year to year. If you are self employed then you must fill in a tax return to declare your earnings to coincide with each tax year (for more information see the HMRC Website (her majesty's revenue and customs)

2. By making an eBay account you are self employed (this is assumed above), this does not mean you have started your own company . Some prefer to start their own company for liability reasons (ie the company and not the individual would be sued so no one could come after the rest of your assets)

3. Potentially, I don't know what the eBay rules are to be honest and the level of sales which would constitute a business account. There will be discounts for doing this I assume
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Uni-Student109
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#9
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#9
(Original post by WazzWazz98)
1. You must pay tax on your earnings above a certain amount, this varies year to year. If you are self employed then you must fill in a tax return to declare your earnings to coincide with each tax year (for more information see the HMRC Website (her majesty's revenue and customs)

2. By making an eBay account you are self employed (this is assumed above), this does not mean you have started your own company . Some prefer to start their own company for liability reasons (ie the company and not the individual would be sued so no one could come after the rest of your assets)

3. Potentially, I don't know what the eBay rules are to be honest and the level of sales which would constitute a business account. There will be discounts for doing this I assume
Thank you for answering my questions, i appreaciate it

about your last answer, would you advise me to start an eBay business account if I decide to start eBay dropshipping?

Also, when would someone come after your assets or you having to pay for any debts or getting in trouble for any matter if you are an individual doing your own business?
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username4899406
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#10
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#10
(Original post by Uni-Student109)
Thank you for answering my questions, i appreaciate it

about your last answer, would you advise me to start an eBay business account if I decide to start eBay dropshipping?

Also, when would someone come after your assets or you having to pay for any debts or getting in trouble for any matter if you are an individual doing your own business?
1. As I mentioned before I don't really know the rules about eBay and what works when, you would have to research that yourself and see which is the most economical

2. Could be debts, could be false advertising or maybe the goods weren't as promised , tax evasion.....could be a whole host of things which maybe even you don't realise yourself
However eBay selling is not hugely risky in theory
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Uni-Student109
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#11
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#11
(Original post by WazzWazz98)
1. As I mentioned before I don't really know the rules about eBay and what works when, you would have to research that yourself and see which is the most economical

2. Could be debts, could be false advertising or maybe the goods weren't as promised , tax evasion.....could be a whole host of things which maybe even you don't realise yourself
However eBay selling is not hugely risky in theory
Oh ok thanks
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username4899406
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#12
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#12
There is a tax free trading allowance as well though if you did set up eBay
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Uni-Student109
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#13
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#13
(Original post by WazzWazz98)
There is a tax free trading allowance as well though if you did set up eBay
Is that where they allow you to earn a certain amount before paying tax?
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username4899406
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#14
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#14
(Original post by Uni-Student109)
Is that where they allow you to earn a certain amount before paying tax?
yes, it varies slightly each year
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Uni-Student109
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#15
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#15
(Original post by WazzWazz98)
yes, it varies slightly each year
Also when you said "If you are doing it as a self employed individual then no need to register , you only need to include when doing a tax return" does that mean I should only register my business when earning a certain amount then?
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bamtutor
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#16
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#16
All of the guidance is at https://www.gov.uk/set-up-business
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username4899406
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#17
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#17
(Original post by Uni-Student109)
Also when you said "If you are doing it as a self employed individual then no need to register , you only need to include when doing a tax return" does that mean I should only register my business when earning a certain amount then?
No, that's not the case
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Uni-Student109
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#18
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#18
(Original post by WazzWazz98)
No, that's not the case
so when would we have to do a tax return?
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username4899406
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#19
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#19
(Original post by Uni-Student109)
so when would we have to do a tax return?
I don't know the full timing and threshold op, because I haven't ever needed to do one myself
Take a look at the government guidelines from HMRC
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Uni-Student109
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#20
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#20
(Original post by bamtutor)
All of the guidance is at https://www.gov.uk/set-up-business
thanks
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