Small Business start up/takeover

Dan_

Hi all

as you can see i'm only new here..i mainly stick to car forum's ..but with the with the way things are now i need advice other than engine work!

I'm just back from traveling oz and wanted to set up a business related to my trade and experience. My father has recently stopped trading in a similar company..and has been in good business since 1985 untill the day he stopped. I an just wondering if i would be able to take it over or would i have to set up again under another name?

Also ..as business would obviously be slow while i set up..would i even have to register for vat? and if i did would i only get charged the amount i actually charged for my service? or would they just assume a figure and send an invoice for that amount..regardless of what the real figure is.

i'm also going to enroll myself in a business start up course to help with the vat and account end of things..

Thanks for any help you can offer me..:) Dan

DubTony

Take it over, take it over.
If it's a company that's trading well, it's a no-brainer. The company name remains the same, you just change directors details. And you're working off your old mans reputation.

Can you offer the same standard of service your Dad did?
Was HE the reason it worked well for a quarter century?

What I'm asking is, would there be a fall off in business because he's not there any more? If this was the case, you'd be looking for him to hang around for a while and keep his face "out front" while you build your rep. It shouldn't be too hard with regular customers though. Taking over the family business is generally seen as a good thing, unless you're a spoilt brat and nobody likes you ...

Dan_

ha ha ..no no its not like that at all..i'v worked on and off for him since i was about 13!lol and i know some of his older customers very well! I can offer the same if not better service!lol :rolleyes:

i was just wondering if it would be an easy job to do...from what you have said it seems it is lol!

JoeTurner

Dan_ wrote: »

Also ..as business would obviously be slow while i set up..would i even have to register for vat? and if i did would i only get charged the amount i actually charged for my service? or would they just assume a figure and send an invoice for that amount..regardless of what the real figure is.

Hi Dan - check with your dad to see if the company is already registered for VAT - chances are it already is.

Your VAT will be based on what you charge for your services less VAT on any qualifying purchases. Take a look at the following on the Revenue's website for a brief introduction: http://www.revenue.ie/en/tax/vat/full-intro.html

If possible, try and ensure you're on the cash receipts basis of accounting for VAT. This means you'll only be liable for VAT on your sales when your customers pay you, not when the invoice is issued. This will protect your cashflow if you find yourself in a situation where your customers are taking longer and longer to pay. See http://www.revenue.ie/en/tax/vat/charging/index.html#_Cash_Basis1 for more details

Hope this helps - feel free to pm me if you need anything further

Dan_

JoeTurner wrote: »

If possible, try and ensure you're on the cash receipts basis of accounting for VAT. This means you'll only be liable for VAT on your sales when your customers pay you, not when the invoice is issued. This will protect your cashflow if you find yourself in a situation where your customers are taking longer and longer to pay. See http://www.revenue.ie/en/tax/vat/charging/index.html#_Cash_Basis1 for more details

Thanks Joe thats is some very good advice! i had no idea you were even able to do something like that! i have spent a lot of time reading the VAT website and cro.ie .. with a few others along the way, and am starting to find out the way to go about things..but i'm sure i'll learn things as i go!:)

oh and sorry..my father was registered for vat but deregistered sometime last year..i'm sure i can register myself easy enough,
also is it possible to change a business to a company? or would it be worth my while to form a company over a business?

Darragh29

DubTony wrote: »

Take it over, take it over.
If it's a company that's trading well, it's a no-brainer. The company name remains the same, you just change directors details. And you're working off your old mans reputation.

Can you offer the same standard of service your Dad did?
Was HE the reason it worked well for a quarter century?

What I'm asking is, would there be a fall off in business because he's not there any more? If this was the case, you'd be looking for him to hang around for a while and keep his face "out front" while you build your rep. It shouldn't be too hard with regular customers though. Taking over the family business is generally seen as a good thing, unless you're a spoilt brat and nobody likes you ...

+1. You just need to fill out some paperwork with the CRO. All I'll say, based on my own experience on this particular subject, is that avoid a situation where your Father says he is retiring but actually stays in control of the business. If he wants to retire and hand it over to you, then I say go at it and give it everything that you have. But if your father is like my father and wants someone else to do the donkey work but doesn't want them to have any control over the direction of the business, then avoid this situation (like I did!), because it won't work out and will usually result in a hell of a lot of conflict.

DubTony

Darragh29 wrote: »

But if your father is like my father and wants someone else to do the donkey work but doesn't want them to have any control over the direction of the business, then avoid this situation (like I did!), because it won't work out and will usually result in a hell of a lot of conflict.

I have one of those tee-shirts around here somewhere.