I was considering starting a small, local web design firm with a friend or two. I have a few questions though...

 

1) Can the 3 of us be registered as self employed whilst working together, or would we need to formally register a business?

 

2) Is there much need for insurance (indemnity/liability insurance, that is) to cover screw ups on our part, which may or may not actually be our fault?

 

3) There's obviously an issue with contracts and such to ensure that the client and the company are in agreement over what they're paying for and who has what responsibilities. Can anyone offer general contract-based advice specific to web design?

 

Thanks.

With 3 directors, I recommend incorporating straight away. This will mean you are employed by the company. This will also cover liability in the sense that any financial troubles or legal issues that may be raised are dealt with through the company as opposed to effecting your personal credit ratings, CCJs etc.

 

You will not need to write up a contract per say but I would recommend you write up some terms of service and make each client aware of them. Mine pretty much say, "If it isn't in the agreed quote, it ain't happenin' YO!" lol use your imagination. You will want to cover the following:

 

Web Development

- Timescales (Guarantees, how they are worked out etc)

- Feedback (Customer co-operation during the project's development)

- Website Demo (Demonstration procedures)

- Pre-launch changes (What the client is entitled to before additional costs are added)

- Payment options (Deposit information, payment methods etc)

- Refunds (Your refund policy)

Website Changes and Updates

- Timescales (Guarantees, how they are worked out etc)

- Warranty work (What potential problems are covered and for how long)

- Warranty exclusions (What potential problems are not covered)

- Payment Options (How payments for changes will be made)

- Refunds (Your refund policy)

Server Downtime

- Expected downtime (Cover yourself for any upgrades or expected downtime)

- Unexpected downtime (What you will do when a server crashes)

- Compensation (Your compensation policy)

Hosting and Recurring Costs

- Fixed/Flexible Fees (Clarify if a quoted cost for hosting or any other subscription can change)

- Recommended Server Upgrades (What you can do if a website does not respond well to a sudden increase of traffic or space usage)

- Missed payments (What you will do in the case of any missed payments)

 

It is a few pages long but completely protects the company from the biggest issues raised in my experience as a developer. I look forward to reading any other ideas.

great post , thanks 4 the advice, in a similar position myself.