Five Point Guide to Starting Your Own Business
Five Point Guide to Starting Your Own Business06 March 2019 Written by James & George Collie

newbusinessAccording to the Office for National Statistics, at the end of May 2009 there were 2.38 million unemployed people in the UK with the quarterly figures showing the largest increase in unemployed persons since comparable records began in 1971.  However, redundancy and poor employment opportunities have encouraged some to take the step to start up their own business.  Anyone doing so will probably have a good idea of the type of business they want to run, but may not be familiar with the legal and technical aspects of doing so.  There are five initial main points that anyone considering setting up in business should consider:-

 1. Business Structure

The simplest business structure is to operate as a sole trader where you are entitled to all profits and responsible for all losses.  If you are running a business with one or more individuals, you will be operating as a partnership where you will share all profits and losses.  It is also possible to set up a limited company which has both tax and limited liability advantages.  You could consider using a limited liability partnership (LLP) which is a hybrid of a limited company and a partnership.

2. Premises

You will need somewhere to trade from.  This could be your own home (subject to planning regulations) or you may seek to rent premises or if finance allows to acquire premises outright.  Guides to renting or acquiring commercial premises will appear in future issues of the newsletter.

3. Staff

If you need to employ staff, you will have to consider arrangements for payment of tax and NIC on their behalf.  It is also advisable to have written contracts of employment for all members of staff.

4. Taxation

On becoming self employed you will no longer pay tax under the PAYE system.  You must register as self employed and will be responsible for payment of Income Tax and National Insurance Contributions. If you are trading as a limited company, Corporation Tax may have to be paid.  Depending on turnover, you may also have to register the business for VAT.  There may also be SDLT to pay on any premises which are rented or acquired.

5. Finance

Many people require a loan or overdraft facility when starting up in business.  With the tightening of lending practice by all Banks, most will require some form of security in support of any loan, such as a second mortgage over your home or possibly a personal guarantee for a company’s borrowings.

If you are considering starting up your own business, James & George Collie have a team of specialists who can assist with general advice as well as setting up a limited company  or LLP, in the preparation of a partnership agreement, providing employment advice, preparation of contracts of employment, and dealing with all aspects of commercial property.  If necessary we can refer to you to tax specialists, accountants, or a finance manager within a major commercial lender.

For further information, or should you wish to arrange an appointment, please email This email address is being protected from spambots. You need JavaScript enabled to view it.

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