Getting Registered and staying Legal in Business

Date Posted: 03/05/2016

Category: Accountancy

The name has been picked, the target market selected, supplies even bought but what about getting registered and legal?

When starting a business you MUST have it registered with HMRC, how this is done depends on what you choose to register as – a Sole Trader or a Limited Company. Each registration form offers different responsibilities and rules, here we supply a comparison of the different registrations and what they would mean for you.

Limited Company

Starting out small does not always mean you are going to stay small, so it may be best to register as a Limited Company in advance to save hassle in the future. A Limited company must have at least one director – usually the owner and register the business name with Companies House. A Limited Company’s responsibilities include:

If you register as a Public Limited Company you are also responsible of issuing shares information and values both to the shareholders and HMRC.

Sole Trader

On the other hand if you choose to start off small and not ready for the responsibilities of a Limited Company then registering as a Sole Trader may be the best option for you. As a sole trader you can still take on employees and the responsibilities that entails however you are also more responsible for the accounting of the business. Your responsibilities will include:

Regardless of the business you choose, make sure your name follows the rules and is highlighted on all invoices, marketing materials and any other official business paperwork. Registering can take a few minutes to do online with the correct paperwork and you can be up and running within 24 hours. So get in touch today and let us get you set up and running the way you want.