Hi there, I've just recently bought a franchise called Mum2mum Market. We organise pop-up sales of nearly new children and baby items, encourage families to reuse items, and send less to landfill. I've also made links with local charities to support them through our sales. A very similar organisation is set up as a CIC but it seems very complicated. I do need to take a wage out of this as it takes a great deal of my time. Does anyone know what sort of asset lock would be put in place? And where can I find out more about the conditions that should be met for a CIC?
CICs are generally used by social enterprises (businesses that operate for social/charitable purposes). If you are wanting your business to be a social enterprise, and be able to apply for grant funding (e.g. from the Big Lottery Fund), you may be better as a CIC. However, your business must be run for the benefit of the community, and the CIC's assets and profits must principally be used for the benefit of the community. You would be able to take a reasonable salary for the work you do for the CIC, but not a share of the profits.
If you are wanting to run this as a private business and be entitled to all its profits, you would be best operating as a sole trader or as a non-CIC company. Just because you are a private business does not mean you cannot be socially conscious, benefit the community, and work with local charities.
Hope this helps