Start up, legal and tax issues

Aspects to consider when deciding on a name for the business:

• Name
• Location
• Reason
• Target Market
• Promotional Aspects
• Personal Reasons
• What is the Product
• Existing companies
• Trademarks

What structures can a new business adopt?

• Sole trader
  • alert HM Revenue and Customs of your start up
  • Begin trading

• Companies
  • Company must be registered with Companies House
  • Inform HM Revenue and Customs

Explain what records need to be kept, how and why:

• Vitally important - particularly for tax and payroll
• Easy-to-use accounting software is readily avaliable
• Worth investing in the services of a book-keeper
• Keep a paper record of what you have to pay out for the business (business credit card)
• Keep a paper record of sales revenue from customers
• Keep your own records up to date, probably a spreadsheet (Microsoft Office Excel, OpenOffice Calc or similar)

What factors need to be taken into account

• Communications
• Labour
• Customers
• Suppliers
• Government Assistance
• From the home
• Rent or lease office/industrial units - can often be short term if needed/wanted
• Take a retail outlet
• Share space with another start-up

Information about taxes for small businesses:

• Taxes
  • Income tax
  • Corporation tax
  • Value added tax (VAT)
  • National Insurance (NI)
  • Business rates
• Tax
  • How much tax a business has to pay
    • sales made
    • employees
    • whether LTD or sole trader
• VAT
  
  • Small businesses only pay if sales over £67,000 p/year
  • VAT at the time of this publication is 20%