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Guest Blog - Starting Your Business

By Cheryl Price CH Accountancy
Tuesday, May 1, 2018

Starting Your Own Business

People set up their own business for many reasons; maybe the kids are growing up and are now at school so perhaps you’re thinking it would be nice to look at going back to work or you may want to set up something alongside your current employment for an additional income? Or maybe you’ve just decided to bite the bullet and do it for yourself rather than work for someone else!

Over the last few years, there has been a rise in people turning to self-employment to give them what mainstream employment can’t. You may have already decided on a business name, possibly designed a logo, or even bought your domain and planned a website and ordered business cards; this can all be very exciting.

However, self-employment can also be scary. You have to deal with the dreaded tax man, keep on top of your finances, even complete a tax return.

There are many aspects of running a business that you may not be familiar with, and quite frankly has nothing to do with actually making money, but you still need to do them. What do you need to do to be official and legal?

A business takes time to build, and often you need to invest a lot of money. It could be quite a while (sometimes years not months) before you start to see a return. Even if you’re making a loss you still need to register and do returns. That loss can be carried back to reclaim tax, or carried forward to offset against future profit.

One of the first hurdles is deciding on what structure to set up for your business.

When you are self-employed you are classed as a Sole Trader.  This is the simplest structure for your business.  A Limited Company is a more formal business structure. 

It’s not just the tax implications that should be considered, there are other factors that should assist in your decision as to which structure to choose for your business.  Here are the main differences between the two:

Difference Between Sole Trader and Limited Co

 

If you’d like any further advice on setting up your business please contact Cheryl and the team at CH Accountancy & Bookkeeping Ltd:

Tel: 01245 791164 | Email: hello@chaccountancy.co.uk | Website: www.chaccountancy.co.uk

If you are thinking of starting your own business then my Rediscover your passion and purpose programme is perfect for those exploring the option of employment to self employment.

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