The business models most people choose are:

 

Sole Trader

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.

For more information about Sole traders visit www.gov.uk/set-up-sole-trader

 

Partnerships (LLP)

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 are not personally liable for any debts the business cannot pay.

·         You must have a registered address (This will be publicly available);

·         You need to have an LLP agreement that says how the company will be run.

For more information about Partnerships visit www.gov.uk/guidance/set-up-and-run-a-limited-liability-partnership-llp

 

Limited by shares (LTD)

Limited by shares company is usually business that make 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.

For more information about Limited companies visit www.gov.uk/limited-company-formation

 

Limited by Guarantee (LBG)

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.

For more information about Limited companies visit www.gov.uk/limited-company-formation

 

Rules for the activity of your company

Depending on your business activity, there may be other rules that you have to adhere to:

Selling goods online: www.gov.uk/online-and-distance-selling-for-businesses

Buying or selling goods from abroad: www.gov.uk/starting-to-import

Store or use personal data: www.gov.uk/data-protection-your-business

Important things to check before you start trading:

·         License, Regulated body, Permits: www.gov.uk/licence-finder

·         Insurance: www.abi.org.uk/products-and-issues/choosing-the-right-insurance/business-insurance/

·         Where you work

 

Responsibilities will vary depending on where your business runs from:

·         Responsibilities if you run your business from home: www.gov.uk/run-business-from-home

·         Responsibilities if you rent an office: www.gov.uk/renting-business-property-tenant-responsibilities

·         Will you be employing staff?

 

There are important things you need to know when employing your staff:

·         Running Payroll

·         Paying National insurance

·         Providing a workplace pension scheme

 

For more information, please visit www.gov.uk/employing-staff

*For more information, please follow the link below: www.gov.uk/browse/business/setting-up