One of the first hurdles that entrepreneurs face when starting their own business is how to correctly register their new venture. Most businesses register as a Sole Trader, Limited Company or Partnership, and it’s important to choose the right business structure for your start-up, since each comes with different responsibilities. To help you make the decision, take a look at this guide from Simply Business, which outlines the main differences between becoming a Sole Trader and a Limited Company.
If you’re thinking of registering as a Limited Company, then it’s important to weigh up the advantages and disadvantages before taking the leap. Check out the video below from Heelan Associates, which breaks down the pros and cons of becoming a Limited Company.
Here are the key takeaways:
Pros:
- A Limited Company is a separate legal entity from you as an individual, so your assets are safe if things go wrong.
- Limited Companies generally pay less in tax compared to Sole Traders.
- Limited Companies only pay one tax bill per year.
Cons:
- Limited Companies often require the services of an accountant.
- Limited Companies require more comprehensive bookkeeping than Sole Traders.
- Limited Companies are more complicated to close down.
If you’ve decided that a Limited Company is the right legal structure for your business, then there are several steps you need to take to complete the registration process. In the video guide below, Dan from Heelan Associates outlines everything you need to consider when registering a Limited Company.
He covers essential topics including:
- How to name your Limited Company
- How to form a Limited Company
- Who can be a director of a Limited Company
- Who can be a shareholder of a Limited Company
- How to choose your registered office address
Once you’re ready to take the leap, you can use the Gov.uk online service to register your business with Companies House.
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