How to start a company

View PDF | Print View
by: Rhiannon Warner
Total views: 769
Word Count: 503
Date: Wed, 4 Jan 2012 Time: 5:09 PM
94 comments

Starting a company today is more complicated than ever before but don't let the legal minefield put you off. With the right information you can start preparing to launch your company today. In an economic downturn may be the best time to start a business, competition drops and office space, stock and advertising all become cheaper.

This brief guide will help you answer some basic questions about how to begin. You should take note of any issues you have issues with, but it would be highly advisable to discuss your plans with a business law solicitor before you begin to take serious steps towards starting your company.

What are the different types of company?
• A Limited Company is a company that is legally separated from its shareholders and investors. This means that a Limited company is legally liable for any debts.
• A Franchise is a company in which you sign a contract with a franchiser who will assist you with your business model.
• A Partnership is a company in which two or more people set up a company together and become jointly liable for any debts.
• You also have the option to remain self employed.

Perhaps the most important thing to understand is the importance of record keeping; it is worth beginning this immediately to ensure you always use best practice. Record keeping is a legal requirement and will help keep you out of trouble with the tax man.

The next thing to do is to write a business plan. This is essential both to organise your thoughts and if you require investment. The business plan should begin by describing what your business is going to do. It should detail your objectives, your strategies and it should contain an analysis of the market and a financial forecast of your predicted figures.

One of your biggest burdens is likely to be tax. Below is a list of the different taxes you will be required to observe. It is worth hiring an accountant to advise you on your strategy before you begin to action your plan.

Corporation Tax
Tax will need to be paid on all taxable profits at a minimum rate of 20%.

VAT
VAT is charged on most business to business transactions as well as business to individual transactions. VAT only needs to be paid by companies turning over more than £73000

PAYE
It is your responsibility to pay "pay as you earn" tax on any salaries you pay your employees.
Another major hurdle will be obtaining the initial funding for your business. It is worth asking a solicitor to advise you on whether you would be best placed to risk your own estate on the investment or whether you should approach investors.

If your business is particularly unique, you may also be interested in researching crowd funding options where minor investors can pledge funds that are held in escrow until a target is reached, at which point the investors either become stakeholders or receive other benefits, such as a free version of your product.

About the Author

Rhiannon Warner is a keen follower of UK law, driven by a thirst for legal knowledge and a passion for making the law work for everyone. She has bestowed her wide legal knowledge through legal sites in a number of different fields, including company law and employment law.

Rating: Not yet rated
Login to vote

Comments

Thu, 5 Jan 2012 at 10:57 AM, by bagsbelstaff

Thu, 5 Jan 2012 at 6:29 PM, by onvenienange

Thu, 5 Jan 2012 at 7:40 PM, by fequiereshir

Fri, 6 Jan 2012 at 6:31 AM, by rcallarmsalv

Fri, 6 Jan 2012 at 3:14 PM, by evondesm

Sat, 7 Jan 2012 at 7:43 PM, by tiffanysivler

Sat, 7 Jan 2012 at 10:24 PM, by cheapthe

Sun, 8 Jan 2012 at 11:19 AM, by evondesm

Tue, 10 Jan 2012 at 10:37 PM, by onuggssale

Sun, 15 Jan 2012 at 5:01 PM, by eckertdarw

Mon, 16 Jan 2012 at 6:44 PM, by northcheap

Tue, 17 Jan 2012 at 3:44 AM, by storeswedding

Wed, 18 Jan 2012 at 11:04 AM, by tiffanyblue

Wed, 18 Jan 2012 at 12:38 PM, by storediscounted

Wed, 18 Jan 2012 at 9:05 PM, by northcheap

Thu, 19 Jan 2012 at 5:10 AM, by onlinetiffanys

Thu, 19 Jan 2012 at 7:00 AM, by ncobernroxan

Fri, 20 Jan 2012 at 5:45 AM, by tiffanysivler

Fri, 20 Jan 2012 at 8:46 AM, by lvlvonline

Sat, 21 Jan 2012 at 11:39 AM, by tiffanysivler

Sun, 22 Jan 2012 at 4:29 PM, by northcheap

Tue, 24 Jan 2012 at 4:33 PM, by lvlvonline

Wed, 25 Jan 2012 at 3:15 AM, by tiffanyblue

Wed, 25 Jan 2012 at 3:52 AM, by ingshirnmosh

Wed, 25 Jan 2012 at 4:22 AM, by choosechoose

Wed, 25 Jan 2012 at 3:14 PM, by dressplus

Wed, 25 Jan 2012 at 8:50 PM, by onvenienange

Wed, 25 Jan 2012 at 9:18 PM, by evondesm

Thu, 26 Jan 2012 at 3:14 PM, by diegowholesale

Fri, 27 Jan 2012 at 1:23 AM, by stylecheap

Fri, 27 Jan 2012 at 3:39 PM, by outletcoach

Sat, 28 Jan 2012 at 3:22 AM, by dresseslace

Sun, 29 Jan 2012 at 12:33 AM, by osenernanc

Sun, 29 Jan 2012 at 5:09 AM, by fireturbo

Sun, 29 Jan 2012 at 6:35 AM, by lvlvonline

Sun, 29 Jan 2012 at 9:32 AM, by servicesoftware

Mon, 30 Jan 2012 at 2:57 AM, by osenernanc

Mon, 30 Jan 2012 at 5:59 AM, by tiffanysivler

Mon, 30 Jan 2012 at 6:59 AM, by storeswedding

Mon, 30 Jan 2012 at 4:53 PM, by andmoncler

Mon, 30 Jan 2012 at 5:11 PM, by andmoncler

Mon, 30 Jan 2012 at 8:57 PM, by naughdale

Mon, 30 Jan 2012 at 10:00 PM, by mothermother

Wed, 1 Feb 2012 at 7:53 AM, by servicesoftware

Wed, 1 Feb 2012 at 11:07 AM, by fequiereshir

Wed, 1 Feb 2012 at 8:50 PM, by audemarsnew

Thu, 2 Feb 2012 at 10:45 AM, by northcheap

Fri, 3 Feb 2012 at 11:51 AM, by northcheap

Fri, 3 Feb 2012 at 11:54 PM, by rcallarmsalv

Sun, 5 Feb 2012 at 5:22 AM, by lvlvonline

Sun, 5 Feb 2012 at 5:26 AM, by ingshirnmosh

Mon, 6 Feb 2012 at 12:39 PM, by mothermother

Mon, 6 Feb 2012 at 3:20 PM, by wigsfront

Mon, 6 Feb 2012 at 11:39 PM, by storeswedding

Tue, 7 Feb 2012 at 12:10 AM, by naughdale

Tue, 7 Feb 2012 at 9:04 AM, by canadawhere

Tue, 7 Feb 2012 at 4:41 PM, by womenevening

Tue, 7 Feb 2012 at 7:08 PM, by canadawhere

Tue, 7 Feb 2012 at 7:43 PM, by northcheap

Wed, 8 Feb 2012 at 12:45 AM, by canadawhere

Wed, 8 Feb 2012 at 4:17 PM, by wigsfront

Thu, 9 Feb 2012 at 9:03 AM, by stylecheap

Thu, 9 Feb 2012 at 12:27 PM, by stylecheap

Fri, 10 Feb 2012 at 12:24 AM, by canadawhere

Fri, 10 Feb 2012 at 3:12 AM, by bagsbelstaff

Fri, 10 Feb 2012 at 5:43 PM, by choosechoose

Sat, 11 Feb 2012 at 1:06 AM, by stylecheap

Sun, 12 Feb 2012 at 6:26 AM, by dvdsinsanity

Mon, 13 Feb 2012 at 3:50 AM, by outletcoach

Wed, 15 Feb 2012 at 11:55 AM, by mothermother

Wed, 15 Feb 2012 at 7:20 PM, by northcheap

Wed, 15 Feb 2012 at 7:36 PM, by tiffanysivler

Wed, 15 Feb 2012 at 10:27 PM, by onlinelinks

Thu, 16 Feb 2012 at 3:49 AM, by fireturbo

Thu, 16 Feb 2012 at 6:37 AM, by Guest

Fri, 17 Feb 2012 at 4:47 PM, by evondesm

Sat, 18 Feb 2012 at 3:04 AM, by Guest

Sat, 18 Feb 2012 at 3:04 AM, by Guest

Sat, 18 Feb 2012 at 12:34 PM, by onvenienange

Sat, 18 Feb 2012 at 12:34 PM, by ingshirnmosh

Sat, 18 Feb 2012 at 1:03 PM, by storediscounted

Sat, 18 Feb 2012 at 5:08 PM, by rcallarmsalv

Sat, 18 Feb 2012 at 10:54 PM, by tiffanyblue

Sun, 19 Feb 2012 at 6:21 PM, by twiesarie

Mon, 20 Feb 2012 at 3:04 AM, by golfallaway

Tue, 21 Feb 2012 at 7:02 AM, by twiesarie

Tue, 21 Feb 2012 at 1:39 PM, by onuggssale

Wed, 22 Feb 2012 at 1:13 AM, by northcheap

Wed, 22 Feb 2012 at 3:53 AM, by dresseslace

Wed, 22 Feb 2012 at 5:31 AM, by ttunickstuar

Wed, 22 Feb 2012 at 7:48 AM, by andmoncler

Wed, 22 Feb 2012 at 4:42 PM, by obiggarsant

Wed, 22 Feb 2012 at 7:33 PM, by diegowholesale

Thu, 23 Feb 2012 at 5:11 PM, by dressplus

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.