Business Start-Up

Sole trader This is the simplest method of operating your own business. This will entail registering as self employed with HMRC using a CWF1 form or you can do it online and paying Class 2 National Insurance contribution, usually by direct debit. Partnership If there are two or more people in your business, you might want to consider this structure. Each partner pays income tax, through the self assessment systems, as well as class 2 and class 4 National Insurance and the business pays VAT once you reach the registration threshold. Limited Liability Partnership (LLP) An LLP is an alternative corporate business vehicle, introduced on 6 April 2001, which gives the benefits of limited liability but allows its member the flexibility of organising their internal structure as a traditional partnership. An LLP is different from the traditional partnership in that it is a legal person separate from its members. In many ways it is a partnership in name only. It has “members” rather than partners and must be formally incorporated to exist. Limited Company Trading through a Limited Company has become increasingly popular, due to flexibility and tax efficiency. Whilst there are other options as detailed above, these rarely prove to be as tax efficient and/or compliant with tax laws. If you are contemplating starting your own business, this might be enough to put you off. However with the benefit of our experience you will find it more straightforward than it may first appear.