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:
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
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.
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
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.