Starting a Company
So, you’ve decided to start a business! Well, that’s the hard bit out of the way then...
They’ll be different things to consider depending on the type of business you’re looking to set up however we’ve put together a quick list of the things to think about:
Where to work
A lot of our client’s tend to work from home when they’re first starting out. Their overheads are lower and, with internet and phone lines already available, the business is much quicker to set up. However, beware that there can be a real clash between home and work – you could end up working more hours than you were when you were working full time! Worse still, you could find yourself sitting on the sofa watching too much daytime TV. Make sure you strike the right balance.
Business names and structures
Think about the name of your business properly – it needs to be catchy, relevant to the business that you’re running and useful for online use. That is, make sure it’s something that people can easily search for online. Regarding structure, there’s a number of different routes to go down. For more information, have a look at our Sole trader or Limited Company or download our free guide to starting a Limited Company. To form a limited company click on the link to the left of this page.
Taxes, payroll and returns
Here’s the complicated bit – the way you pay taxes will inevitably be affected if you set up a small business. There are different procedures for both Limited Companies and sole traders so you’ll need to get specialist advice about how you pay tax. However, in basic terms, if you own a Limited Company you’ll need to complete an annual return at the end of your tax year and send a set of your accounts to HMRC. From there, things get a bit complicated. You need to think about whether to register for VAT and whether you need to set up payroll. For more information, ask us a question.
Managing your business
How are you going to get business? Think about where you can find work and where potential clients might be. Setting up a website and joining local business meetings are good places to start. We've put together some advice on finding work as a freelancer.
Appoint an Accountant
If you’re planning on running a Sole Trader or Limited Company, you’ll need an accountant to help you with your tax. If you already have a personal accountant, contact them and they’ll be able to help you set up your company. If you don’t yet have an accountant, contact us, call us on 0500 234111 / 01442 275767.