If you have reached a decision that you would like to start up your own business – congratulations! Now the next stage is deciding what type of business you think you should be and what are the benefits of each.
Becoming a Sole-Trader requires no or little start-up costs. Registering is easy but can be quite daunting. As a Sole-Trader you are personally responsible for all commitments made on behalf of the business. It is your responsibility to make sure you keep track of your business transactions and submit your annual Self-Assessment on time. Here at SMART Bookkeeping we can help you get started. We can help you with how you will keep track of your accounts and we can also compute you sole Trader accounts and formulate and submit your Self-Assessment tax return.
As a Director of a Limited Company, your level of personal risk is limited by how much you choose to invest. This may be the right choice for you if you are looking to grow and expand. The Directors have a lot of responsibility, including keeping accurate financial records, submitting a Confirmation Statement and Company Tax Return annually – All of which we can help you with.
If you have a longstanding friend who shares a passion for your industry, a partnership is ideal. Many construction and service companies are established by family members and friends. In this instance, all partners in a business are equally accountable for debts created and decisions made by the company. It’s wise to carefully consider your choice of business partner.
Limited Liability Partnership (LLP)
This kind of partnership gives you the flexibility associated with a partnership whilst also putting in place the same obligations applied to a limited company. Each member shares the same amount of managerial responsibility and you also have the ability to add new members. The level of liability resting on each individual is determined by the agreements they have made whilst applying for funding and their individual investment into the company.
Starting up your business should be enjoyed. SMART Bookkeeping will help you every step of the way.