Random business opportunities we never see coming are always nice surprises. But don’t forget that owning your business and being registered by law is always handy and will make your business legitimate and trustworthy.
It will also make sure you’re abiding by the law, and paying the correct amount of tax!
So here’s our step-by-step guide to registering your business.
- Decide which type of licences you need or want. You can either register a sole trader, a limited company or a business partnership.
- Sole trader: own the business and can work alone and employ others. You are self-taxed meaning you work out how much you need to pay. To become a sole trader, you need to:
- Have a national insurance number
- Pick a business name
- Register with HMRC
- Limited Companies: this is a private company doing business in the UK. Taxes are separated between personal and business income. To register you need to:
- Have a name and address with companies’ house
- Have a minimum of 1 director
- Have a minimum of 1 shareholder
- Have rules and regulations about the company written and documented
- Set up corporation tax for your company.
- Business partnership: In this case you are the sole owner, but all partners have a responsibility in the business. To register:
- Register for self-taxation with HMRC
- Name your business
- Run the whole business as only an induvial
- Share profits with partners.
So what could happen if you didn’t follow our guide? And why should you?
- Protection: as companies grow the more protection and cover you have the better it is for you. By registering you have protection over your assets – especially if someone if trying to get their hands on them. Legally you stand in a much better position
- Investors: Don’t be fooled. If you want good investments, you better make sure that you’re registered. Investors stick with the companies that seem legitimate.
- Tax: if you think you’ll escape tax by not registering – you’re wrong. More often than ever partnerships are taxed twice because there are 2 of you. Get a partnership license and pay the right amount!
- Hiring: If you want goo employees you really should register, if you’re not they may be hesitant to join.
If you find you are thinking of setting up a business, seek legal advice. Or if you want to know more don’t hesitate to call our team on: 0116 2999 199 or alternatively you can email us at: firstname.lastname@example.org