Question about SIC code and opening a new business line

[Ricardo19ip]

This blog post may help. A few things to consider, but generally I'd agree with ladymuck. Ie start off with it via your existing Ltd Co, and if it starts to take off, then more seriously consider spinning it out into a separate entity.

I really wouldn't worry about the SIC. I've never ever heard of any issues caused by having a slightly incorrect SIC. As long as you're not putting something daft like "forestry" you'll be fine.

Thanks a lot!

That link is very useful.

[Maslins]

This blog post may help. A few things to consider, but generally I'd agree with ladymuck. Ie start off with it via your existing Ltd Co, and if it starts to take off, then more seriously consider spinning it out into a separate entity.

I really wouldn't worry about the SIC. I've never ever heard of any issues caused by having a slightly incorrect SIC. As long as you're not putting something daft like "forestry" you'll be fine.

[Jess inniAccounts]

A friend of mine wanted to branch out and their accountant said it was fine to have a trial run under their existing LtdCo and then if it became a goer it may be better to set up a separate entity.

Keep good records of all costs associated with the trial run so you can transfer that all over should you want to take that route.

And, yes, get the details confirmed with your accountant

100% agree

[ladymuck]

A friend of mine wanted to branch out and their accountant said it was fine to have a trial run under their existing LtdCo and then if it became a goer it may be better to set up a separate entity.

Keep good records of all costs associated with the trial run so you can transfer that all over should you want to take that route.

And, yes, get the details confirmed with your accountant

[Ricardo19ip]

I think you've answered your own question. You are not selling software. The customer will not get the software, they will have access to a service.
If in doubt ask your accountant.
Also, you've not started trading yet so no SIC code change needed.

On another note, you may want to consider setting this up as a separate LTD company. There are additional costs for doing this, but many benefits. One would be the ability to raise additional capital from other investors without giving away any contractor income.

Thanks for reply Lance.

I will do that, I will ask my accountant, because I just want to sell a service.

Regarding your other suggestion: My idea is to create a MVP (minimum viable product) as an experiment, if this is a success, then I will open another LTD (or maybe it is not needed and I can stop working as a contractor). if I fail, at least I don't spend time opening another LTD. The thing is, I want to focus in the experiment, verifying my hypothesis.
Is there any issue with this approach?
I don't need or want money from investors, I prefer to have total control, and because I develop all the systems, I don't really need to spend a lot of money, just paying a designer and ads.

Thanks for your suggestions.

BTW, do you see any problem regarding insurance?
I use:
IT Freelancers, Consultants & Contractors Insurance | Kingsbridge Contractor Insurance
That says:
" to protect IT contractors who provide software, hardware, and electronic equipment as part of their business"
But again, I don't want to sell software, but a service.

Anyway, I will contact them.

Thanks a lot.

[Lance]

Hello guys,

Right now, I am a contractor, working in London developing apps for my clients, as many other contractors here.

My SIC number is 62020 (Information technology consultancy activities), which seems right to my current activity, but according to this:
SIC Code Support - SIC Division 2007 SIC Codes - Computer programming, consultancy and related activities
it says “does not allow selling my own software.”

The thing is, I would like to create an app on my own, not for my clients, and upload it. For doing this, I need to pay another contractor (a designer) and I also need to pay facebook to carry out a facebook ads campaign.

So, do I have to add another SIC number to my company? Given that 62020 does not allow selling software.
BTW, I don't really want to sell software, but a service, because people would pay a subscription when using my app. Does this mean "selling software"?

Thanks a lot for your suggestions.

I think you've answered your own question. You are not selling software. The customer will not get the software, they will have access to a service.
If in doubt ask your accountant.
Also, you've not started trading yet so no SIC code change needed.

On another note, you may want to consider setting this up as a separate LTD company. There are additional costs for doing this, but many benefits. One would be the ability to raise additional capital from other investors without giving away any contractor income.

[Ricardo19ip]

Hello guys,

Right now, I am a contractor, working in London developing apps for my clients, as many other contractors here.

My SIC number is 62020 (Information technology consultancy activities), which seems right to my current activity, but according to this:
SIC Code Support - SIC Division 2007 SIC Codes - Computer programming, consultancy and related activities
it says “does not allow selling my own software.”

The thing is, I would like to create an app on my own, not for my clients, and upload it. For doing this, I need to pay another contractor (a designer) and I also need to pay facebook to carry out a facebook ads campaign.

So, do I have to add another SIC number to my company? Given that 62020 does not allow selling software.
BTW, I don't really want to sell software, but a service, because people would pay a subscription when using my app. Does this mean "selling software"?

Thanks a lot for your suggestions.