Starting a New Business

In a survey conducted in February 2008 by a leading business publication, over 40% of the population in the UK and about 35% of its workforce said that they had thought about starting their own business. In addition, one in five stated that they intended to open their own business in the coming year, showing the momentum in entrepreneurship. Company formation agents such as Companyformations24.7 are well versed in the complete process of business start up and are the best way to go about this process.

The trend for new business start ups has never been stronger, and has also never seen so much support from associations in the industry. For the majority of people wanting to start their own business, gaining a greater amount of freedom at work is the main motivation towards a new business start up.

Getting a business off the ground requires some serious thinking and planning. The first step involves deciding on the type of legal entity, whether the business will be a partnership, a limited company or under a sole trader format. Setting up either a partnership or a sole trader business is relatively simple, but all debts from the business will be the owner’s own responsibility.

In a limited company business start up, the debts can be limited by a guarantee, and you will be an employee of the company and will have to pay your income tax and insurance through the regular PAYE scheme. Setting up such a company takes slightly more time as it involves registration of the company with Companies House, which is the authority for company formation and registration in the UK. The best way to handle this format is to use company formation agencies such as companyformations247.co.uk.

For a new business start up as a sole trader, you will have to get a booklet from the Inland Revenue called ‘Thinking of Working for Yourself?’ P/SE/1 and fill the CWF1 form. This form needs to be sent to the Inland Revenue so that you can register as a self-employed person with them.

As a sole trader, your accounts will be relatively uncomplicated and it will be possible to maintain your own records and fill the Self Assessment Tax forms. While it is not necessary to hire an accountant, by doing so you will probably be able to save some tax. For business start ups that will function as partnerships, it is required that each partner send the form. It’s probably also a good idea to have a Partnership Agreement, which specifies what each person owns and brings into the business.

Do remember that while new business start ups are a rewarding way to function, they are also most challenging. The initial process can be a bit overwhelming and time consuming, so it’s a good idea to take help from professionals such as companyformations247.co.uk who can guide you through the entire process.