“Business opportunities are like buses, there’s always another one coming.”
– Richard Branson, founder of Virgin Enterprises
If you’re a budding entrepreneur and think it’s time you were your own boss or want to form a partnership or limited company and conquer the business world, then here is some top information on how to ensure success.
It’s not easy to determine an approach to starting your own business but there are three main ways you can do this and you need to decide which one suits you best. Being self-employed is a big decision so it’s important that you take time in choosing the one which will see you be the next Alan Sugar or Richard Branson!
Being a sole proprietor is the most common and simplest way to run your own business.
- trade under your own name
- keep your own accounts
- avoid registration fees
- and most importantly keep all the profits
You will make the decisions on how to run your business and raise the finance needed. However you will become personally liable for the businesses’ debts, making this one of the riskier options but it is easy to set up.
So if you have a great business ideas and the determination and drive to go it alone then you should think about being a sole proprietor.
A partnership is between two or more persons where the partners share responsibilities and the risks and costs of the business.
Each partner is responsible for paying tax and the profits of the business are shared. It is important that a written partnership agreement is set up by a solicitor from the start to determine the share of profits, giving the business a proper foundation and providing evidence of the partnerships existence because you could be in real trouble if you don’t do this and your partner runs off!
So if you have spouse or friend who could make the perfect business associate then a partnership is right for you.
Alternatively you can form a company which means you will not be personally liable and the companies’ finances are separate from your own personal finances. However you must be registered at Companies House and file your accounts with them annually and you will have a wider range of reporting and tax requirements to meet.
This will greatly increase your business opportunities though as other companies often prefer to deal with limited companies, even if your business is not very large.
So if you want to set up an organisation which holds a separate legal entity to you then a limited company is your best option.
So if you are fed up of working for other people and want to be your own boss then contact Seatons Solicitors today for a no obligation chat on 0800 3 10 11 12 and let’s see if we can help you make your business idea come alive today!
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