When you go into business for yourself one of the first things you need to decide is how you will structure your venture. Whether you chose to be a sole trader, set up as a partnership or a limited liability company, it is important to know that there are advantages and disadvantages to each.
By setting up as a company you can take advantage of the following:
The disadvantages of setting up as a company include:
The first step is to register your business at the Companies House. This requires the filling in and signing of some basic forms. An accountant can do this for you.
Before you can register your company you will need to give it a unique name. Take your time thinking up a name for your business, make it memorable and reflect both your personality and the vision you have for your organisation.
You will also need to provide the Companies House with a Memorandum of Association and Articles of Association (the Articles). The Articles set out how the company will be governed, the rules that will apply to directors and the rights of any shareholders.
Your company will need to have an address which is registered with the Companies House.
Yes you can. All companies must have at least one director.
By law you have to file accounts at the Companies House annually. These will be made public. You will also need to inform the HMRC of the profits you have made and pay corporation tax on the amount you report.
Setting up a company is a fairly simple process. Once you have organised the formalities you will be free to get on with growing your business and celebrating your success.