UK business startup resources

The government will help your own business get started

It has often been said that Britain is a nation of small shopkeepers, the entrepreneurial spirit is alive and well in the army of self employed business owners in the UK.

Start with your idea for your own business, form a business plan, make it viable, then seek an accountant. The following link will give you access to vital government information. Bear in mind tax breaks, guaranteed small business loans, regional incentives, small business training and don't forget the local chamber of commerce, great for networking.

 Business link

This business website is the government information library to all things needed to set up your own business, the advice is up to date and relevant, there are some great tools there too. Your tax returns can now be filed online and all relevant links can be found on these pages.

AGLOCO

This new listing to the London stock exchange, is worth taking a look at, some of the forecasts for the profits are turning heads all around the globe.

The company is giving its entire shareholding to its users, so when you sign up at the site, you register as a shareholder. It reminds me of the Totalise days, when carpet baggers were a force on the web. Anything free is always a big attraction, and although, not a business, as such,

AGLOCO can offer solid rewards for quick starters and people willing to make the effort.

AGLOCOedr

Small business setting up.

Sole trader or Limited Company formation?

At the early stages of starting your own business, during planning and preparation, you are faced with the choice of opting for operating as a sole trader or forming a limited company. They both have advantages and drawbacks, it is your responsibility to use due diligence when deciding which way to go. You should seek the advice of a professional for your UK business startup, but here are some pointers.

Sole trader, or self employed.

If you want to test the business market and operate as a self employed, one man band, with average earnings, then sole trading is a good start, not forgetting that you can always convert to a limited company in the future. There is less paperwork involved, your annual returns do not need to be filed at companies house and made public.

You must first register with the inland revenue, guidance is seen here inland revenue. Make sure that you register before you trade because the revenue will impose financial penalties for late filing. If your turnover takes you above the threshold then you must also register for VAT.

A sole trader, or sole proprietor means that your business is just an extension of yourself, you can have a business name, although this could lead to potential problems, so your own name may be more suitable.

All your business taxes are payable personally, by you. All the losses. If your business ever damages, there is no distinction between the business and you. You remain liable for any losses.

You can file your own taxes, with software like accounting, although many people use the professional services of an accountant and they can be found online, but a personal recommendation is worth its weight in gold.

Your business is always considered second class in the business world, for some strange reason banks and companies prefer to trade with Ltd companies, even though there is usually less owner / risk ratio.

There are some very successful sole traders operating in Britain, these people are happy to continue without double taxation, shareholders, etc

which leads us to the next subject;

UK business startup as a Limited company?