There are several important steps to carry out when you first set up a business. But, the primary task of what you need to do, is choose a legal structure and then register the business.
SETTING UP: When it comes to career options, few are as rewarding as starting up your own business.
That said, working for yourself and becoming self-employed is also a real challenge. But, there is no shortage of help and advice available.
When you set up a business you can get expert help with planning and specialist training courses.
Note: In some cases you will need licences and business insurance.
This section explains how to get reliefs and benefits when you first set up a company. But, we recommend you get professional advice if you need funding for any start-up costs. The Prince's Trust offers financial support through The Enterprise Program.
So the essential question has to be: What do you need to do to set up a business? In short, it all depends on three main factors. What type of business you are starting, where you are working, and do you need to take on staff to help you?
There are various possibilities for registering a business and ways of being self-employed:
As a rule, setting up as a sole trader is simple and quick. Sole traders are personally responsible for any debts associated with their business. That means, working as a sole trader incurs some bookkeeping and accounting responsibilities.
Forming a limited company means its finances are separate from your personal ones. But, it increases your reporting and management responsibilities. That can put many people off setting up limited companies.
You can set up a limited company yourself. That said, in most cases you will need help and advice from a professional accountant.
Starting a partnership business is a simple way for 2 or more people to run it together. In this case, all partners would share the responsibility of any company debts. You will also have accounting responsibilities like those of sole trader businesses.
The kind of responsibilities you have depend most on what the business does. In some cases you will need:
Other rules for different business setups include situations where you:
When you set up a business, you must check what responsibilities you have in cases where:
As a rule, you must pay business rates when you rent or buy a property for running day-to-day operations. If you start a small business you can apply for a discount on your rates. In fact, some startup businesses may pay no rates at all.
Note: Check whether you can claim expenses for any equipment, the office, or a property.
If you start employing people there will be things you need to do to avoid breaking employment laws. The extra type of responsibilities you will have include:
Where can you get further help with setting up your business? The government website has a business support helpline page. If you are working after State Pension age you may need to pay tax on it.
Set Up a Business: A Simple Guide for Starting a Company