BUSINESS START UP QUERY

007.57

Hi,

I am a sole trader and have set up a new business selling subscriptions to businesses. I want to add a store to the website but my friend will own and run it and take all the profits

we are both sole traders but does the above described business set up need to be a partnership?

any feedback would be fantastic. thanks

R3al

Why would the other person take all the profit from something which is available on your website?

007.57

I don't want to take any money from the shop as I wont be involved in maintaining the store, stock, completing orders, etc. All I am offering a link on the homepage of the site to www.websitenames.ie/shop. The rest is up to the person who is running the shop

if we are both trading under the same domain name do we have to be a partnership business set up or can we both be sole traders?

DubTony

I'm not sure why, but this doesn't sound like a good idea to me. Irrespective of how you and the "shop owner" split things up, there's a risk involved to you. What if he screws people over? What if he takes money and runs? If you aren't interested in any way whatsoever in operating an online store why are you doing this?
I haven't thought this through really, but something seems wrong here. Is this your idea or your friends? You've nothing to gain and everything to lose.

"I want to add a store to the website but my friend will own and run it and take all the profits" has got to be one of the craziest quotes I've ever seen posted on this forum. The domain name is yours and I assume your customers know you by this name. Allowing somebody else to "tag along" is lunacy.

I can see absolutely no reason for this. I'm getting annoyed. How much work have you put into your business? Do you understand the risk involved in just handing over your name? If you had a large office and met clients there, would you allow some guy to come along free of charge and put in a load of shelving and sell stuff from it?
....

I'm actually torn here. Do I close the window and let this silly thread go away, or do I hit the "Submit Reply" button.

Ah here ... I've wasted this much time and energy already, I might as well ...

007.57

Jaysus calm down, it's not as bad as it sounds.

I wouldn't let someone else destroy my business. My friend has operated online stores for a number of years and has great experience at it. There is an opportunity and a demand for an small online store on my site and I thought it would be a nice feature now, rather than later to proceed with it.

It's also for tax reasons that I'm asking about this. I already have a full time job and am a registered sole trader operating a small site with a modest turnover from paid subscriptions so I have a limit to what profit I can make without getting taxed.

Amazon.co.uk have a similar set-up as they provide a marketplace for a lot of businesses and yet continue to profit even though the quality of these sellers differs greatly. When one of these businesses make a mess, does this effect amazon greatly? not really

I am not comparing myself to amazon, just the set up.

any feedback would be great.

Mr. G

Hmm, its very risky! You can easily set one up yourself anyways. Why bother let him do it if it has no profit for you? Remember that he will do the work for you and sell your stuff and make a profit, what will happen if he doesn't dispatch the item-it will be in your name.

However, if it was him, legally you have to comply with the law and you don't confuse the consumer. On the online store, have “items are sold from third party vendors, we take no responsibility for issues with the seller“ or simular. Hope this helps.

007.57

Thanks for your help Mr Grumpy. You've answered my query, I will notify the customers of the store that the goods are being sold by a third party. Cheers