Different types of companies

Group of people holding each others hand

If you have decided to start up your own company, you are more than likely thinking about where you begin.

 

This all depends on the answers to the following:

The type of business you are going to have.
Where you are going to work from,
Are you going to have any employees?
 

The business models most people choose are:

Sole Trader

If you are a sole trader, you run your own business as an individual and are self-employed.
You will need to keep records of your business’ sales and expenses.
You will need to send a self-assessment tax return every year

 

Partnerships

A partnership is the easiest way for two or more people to run a business together.
Each member pays tax on their share of the profits but aren’t personally liable for any debts the business can’t pay.
You have to have a registered address (This will be publicly available)
You need to have an LLP agreement that says how the company will be run.

For more information about Partnerships visit www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp

 

Limited by shares (LTD)

Limited by shares company is usually business that makes a profit.
Your company will have separate finances from your personal ones
You must have at least one shareholder who can also be a director. If you are the only shareholder you will own 100% of the company.
The company can keep any profits it makes after paying tax

For more information about Partnerships visit www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp

 

Limited by Guarantee

This is a non-profit company. All profits will be invested back into the company
Limited by guarantee have guarantors and a ‘guaranteed amount’ instead of shareholders and shares.
Guarantors promise an agreed amount of money to the company if it cannot pay its debts.

For more information about Partnerships visit www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp

 

Rules for the activity of your company

Depending on your business activity, there may be other rules that you have to adhere to:
Selling goods online:
www.gov.uk/online-and-distance-selling-for-businesses
Buying or selling goods from abroad:
www.gov.uk/starting-to-import Important things to check before you start trading:
License, Regulated body, Permits:
www.gov.uk/licence-finder
Insurance:
www.abi.org.uk/products-and-issues/choosing-the-right-insurance/business-insurance/

Where you work

Responsibilities will vary depending on where your business runs from:
Responsibilities if you run your business from home:
www.gov.uk/run-business-from-home
Responsibilities if you rent an office:
www.gov.uk/renting-business-property-tenant-responsibilities

Where you work

Responsibilities will vary depending on where your business runs from:
Responsibilities if you run your business from home:
www.gov.uk/run-business-from-home
Responsibilities if you rent an office: www.gov.uk/renting-business-property-tenant-responsibilities

Will you be employing staff?

There are important things you need to know when employing your staff:
Running Payroll
Paying National insurance
Providing a workplace pension scheme

For more information please visit
www.gov.uk/employing-staff

*For more information, please follow the link below:
www.gov.uk/browse/business/setting-up


 

If you would like more information, please contact our customer engagement team who would be delighted to assist you further.

Email us: [email protected]

Call us: 0207 781 8033