As an entrepreneur, starting a new business venture can be cumbersome. You’re not alone- other entrepreneurs from London have been through the same.
As a remedy, here is some advice on starting up a small business from Ernest & Co Accountants.
- Legal Form
You should consider which kind of business structure you have in mind. If you are alone, then you have to operate as a sole trader. However, if you are more than one person, a partnership. Alternatively, you may wish to opt for a limited liability company.
All these business forms have their pros and cons, from limited to commercial and taxation considerations.
Reliable cash injection for funding daily operations is necessary as starting and running a business has cost implications. Also, if you seek a bank loan, there may be tax implications.
Before you engage in a business venture, consider how best to fund your capital expenditure.
It is essential for all businesses to abide by the government regulations. It is a requirement by law to register with the HMRC on time. Remember to do VAT, and if necessary, self-assessment. For small businesses with minimum taxable turnover, registration is mandatory; the threshold currently at £85,000.
If the business includes salaried staff, it will need to register with HMRC to process the PAYE scheme. Adhering to regulations within pensions is paramount as defaulting could lead to stiff penalties.
- Record Keeping
Depending on the turnover levels, every business has to have its accounting records in order. As of April 2020, this is to be done digitally. Getting the right accounting package like Xero and setting it up from the beginning will save your business time and any unwarranted inconveniences.
Typically, there is a lot to be done when starting a small business. Having done this countless times, Ernest & Co Accountants will be able to guide you.
Want to know more? Give us a call!