Startup
“We’re on a mission to change the world”.
“We’re on a mission to change the world.”
Businesses that fall into this category are usually bigger than sole traders, and often involve more people (although this is not always the case).
Private limited companies and Limited Liability Partnerships [LLPS] prepare formal structured accounts that have set formats and disclosures. These are filed on public record at Companies House, and for limited companies, also with HMRC. Submission deadlines are normally based on the business’ year end date.
As the name suggests, for private limited companies and LLP’s there is a legal separation between the business assets and the owner(s)’ personal assets, so that any business liability will normally fall on the business to settle, and not the business owner – the owner(s) have limited liability.
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‘The optimist’
Startup
“We’re on a mission to change the world”.
Businesses that fall into this category are usually bigger than sole traders, and often involve more people (although this is not always the case).
Private limited companies and Limited Liability Partnerships [LLPS] prepare formal structured accounts that have set formats and disclosures. These are filed on public record at Companies House, and for limited companies, also with HMRC. Submission deadlines are normally based on the business’ year end date.
As the name suggests, for private limited companies and LLP’s there is a legal separation between the business assets and the owner(s)’ personal assets, so that any business liability will normally fall on the business to settle, and not the business owner – the owner(s) have limited liability.
Startup checklist:
How are you going to trade? Sole trader, partnership, limited liability partnership [LLP] or private limited company? Each structure has advantages and disadvantages. How much this will affect you will be dependant on what you want to do now, and in the future.
Have you got money in the bank? There is a reasonable chance that you may have to settle a cost before your first customers pay you.
How are you going to keep a track of the business transactions? With VAT thresholds etc. to monitor, it can be a costly mistake to miss a deadline without realising.
What are your sales terms? Believe it or not, you may have a customer that doesn’t pay your invoice! To ensure that you are in the strongest possible position to take action, ensure that your sales terms are known by your actual/potential customers.
Try to keep a separation between personal and business transactions (i.e. don’t use a business bank account as a private bank account).
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The starteruppers guide to launching a business
In this guide we’re going to tackle three key areas: registering your business, record keeping and paying your taxes.
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