Starting a Business

Set up a business –  click here for advice for setting up any type of business, including sole traders, partnerships and limited companies. This link also explains the pros and cons for each type of business.

In the UK, most businesses set up as a sole trader, a partnership, or a limited company. Most businesses in the UK are sole traders.

Sole Traders

Find out more about being a sole trader and how to register.

Sole traders are self-employed people who run their own business as an individual and work for themselves. You can keep all your business’s profits after you’ve paid tax on them, but you are personally responsible for any losses your business makes. You must also follow rules on running and naming your business.

Read the following guidance:

  1. Set up as a Sole Trader –  step by step guide
  2. Choose a name – rules for business names
  3. licences or permits
  4. business insurance – protect against risks, mistakes, stock or premises damage, and legal costs
  5. Data protection – factors to consider if your business stores or uses personal information.
  6. Register for Self Assessment – guidance on how to register with HM Revenue and Customs (HMRC).
  7. Complete the Self Assessment –  guidance on completing a tax return, and how to get help.
  8. Business Records – guidance on completing your business records to show to HMRC if needed.
  9. Running a business from home – business insurance, informing your mortgage provider or landlord, and keeping local planning offices updated.
  10. Renting a business property – finding out your responsibilities e.g. repairs and maintenance, fire safety, electrical safety checks for equipment, gas safety, dealing with asbestos etc.
    1. If you rent or buy a property, you may have to pay business rates. Small businesses can apply for a discount on business rates and some may pay nothing.
    2. Check if you can claim office, property and equipment as expenses.
  11. Register for VAT – you must register for VAT if your turnover is over £85,000 per year.
  12. Employing staff – advice on what you need to do when you employ staff for the first time
  13. Construction Industry Scheme –  Register for the Construction Industry Scheme if you’re a contractor or subcontractor.

Get help with setting up your business

Your business can get advice and financial help from government-backed schemes. Enter your details and select the type of support you need.

You can also get:

You can contact the government’s Business Support Helpline (England) for free advice, Monday to Friday, 9am to 6pm (except bank holidays)

Other kinds of businesses

Limited companies

If you form a limited company, its finances are separate from your personal finances, but there are more reporting and management responsibilities.

Some people get help from a professional, for example an accountant, but you can set up a company yourself.

Partnerships

A partnership is the simplest way for 2 or more people to run a business together.

You share responsibility for your business’s debts. You also have accounting responsibilities. Find out more about being in a partnership and how to register.

Other business and employability support