Set up a business in the UK

Startup but not sure how to start up?

That’s what we’re here for

Accountax loves working with new businesses and we’re sure you’ll love working with us.

We know that starting a business can be tough – after all, we started a business once, so we’re here to help.

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Got a great idea and don’t know where to start

Let’s have a chat about your new business and what you’re planning to do.

We’ll give you some ideas about how you can organise things and show you what we can do to help.

How about starting by clicking the button?

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What you need to start a business

When you are kicking off your new business it is a fair bet that you’ve got a great idea and a burning desire to make a difference.

What you won’t necessarily have is the ability to put all the moving parts together.

You need a business advisor.

Someone who will tell you whether you need to stay as a sole trader or move to a limited company.

Someone who can get you registered with HMRC and Companies House.

Someone who can manage the setup of your accounts and admin systems.

Someone who can help you pay your people. In short – someone like Accountax.

Your trusted friend

When you start your own business the one thing you have plenty of is questions.

The aim of our startup service is to help you answer these, with trusted and experienced backup from an industry-leading accountancy practice.

Sure, we can do your bookkeeping, accounts and payroll but it’s much more than that.

We’re available when you need to ask the questions that wake you up at night.

And we’ll give you the information you need to make the right decisions first time, every time. In short, we’ll be your trusted friend.

What are the different types of business structures in the UK

It's important to note that the ideal business structure depends on factors such as the nature of your business, long-term goals, desired level of control, and personal circumstances. Seeking professional advice from an accountant or business advisor can help you make an informed decision based on your specific needs.

Sole Trader:

As a sole trader, you are the sole owner of your business, making all decisions and retaining full control. This structure offers simplicity, minimal setup costs, and flexible management.
However, it also means unlimited liability, as you are personally responsible for all debts and liabilities

If you start working for yourself, you’re classed as a sole trader. This means you’re self-employed – even if you have not yet told HM Revenue and Customs (HMRC).

Start as a sole trader

Sole Trader:

Pros:

Simple and inexpensive to set up and run.

Complete control and decision-making authority.

Direct access to profits.

Flexibility in managing business operations and finances.

Cons:

Simple and inexpensive to set up and run.

Complete control and decision-making authority.

Direct access to profits.

Flexibility in managing business operations and finances.

Limited Company:

A limited company is a separate legal entity from its owners, offering limited liability protection. This structure enhances your credibility, facilitates raising capital, and provides tax planning opportunities. However, limited companies have more extensive compliance requirements, and financial information is publicly available

Limited Company:

Pros:

Limited liability protection, separating personal and business assets.

Credibility and professional image in the eyes of customers and investors.

Easier access to funding and capital through shares and investors.

Tax planning opportunities and potential for tax savings.

Cons:

Limited liability protection, separating personal and business assets.

Credibility and professional image in the eyes of customers and investors.

Easier access to funding and capital through shares and investors.

Tax planning opportunities and potential for tax savings.

Partnerships:

Partnerships involve two or more individuals sharing the responsibility and profits of the business. This structure allows for shared decision-making, a broader skillset, and increased financial resources. However, partnerships also come with unlimited liability for all partners, and conflicts between partners can pose challenges.

Partnerships:

Pros:

Shared responsibilities and workload among partners.

Access to a wider range of skills, knowledge, and resources.

Shared decision-making and combined expertise.

More options for raising capital compared to a sole trader.

Cons:

Shared responsibilities and workload among partners.

Access to a wider range of skills, knowledge, and resources.

Shared decision-making and combined expertise.

More options for raising capital compared to a sole trader.

Limited Liability Partnership (LLP):

Limited Liability Partnership (LLP):
An LLP is a hybrid structure combining elements of partnerships and limited companies. It provides the flexibility of a partnership while offering limited liability protection to its members. LLPs are well-suited for professional service firms, allowing partners to be shielded from personal liability related to the actions of other partners. However, setting up an LLP involves more formalities and higher administrative costs.

Limited Liability Partnership (LLP):

Pros:

Limited liability protection for partners, shielding personal assets.

Flexibility in partnership agreements and profit distribution.

Combination of partnership benefits with limited liability.

Individual partners are not personally responsible for the actions of other partners.

Cons:

Limited liability protection for partners, shielding personal assets.

Flexibility in partnership agreements and profit distribution.

Combination of partnership benefits with limited liability.

Individual partners are not personally responsible for the actions of other partners.

Need help choosing the right business structure ?

At Accountax, we excel in assisting start-ups in selecting the optimal business structure that aligns with their aspirations and long-term goals. Our team of skilled professionals understands the unique challenges and opportunities that arise during the early stages of a business. With our expertise and tailored advice, we'll help you establish a solid foundation for sustainable growth.

With our industry-leading startup service you get

Fully managed same day processing

Free consultation with accountant

Free Software Cloud accounting and reporting

Super-fast online service (no signatures or paperwork)

A dedicated point of contact

Inclusive of companies’ house fee.

Free .co.uk domain name & professional email address @yourowncompany.co.uk

Email copy of all new company documents

Business Phone Number Free for 15 days , Divert calls to mobile or use our app.)

Get Started

From Just

£49.

Per / month

Free when you sign up to our accountancy services

Start a Business FAQ’S

Are there any government grants for starting a business?

Apply for a government backed Start Up Loan of £500 to £25,000 to start or grow your business.

How long will it take to complete the whole process?

Customers who are highly prepared can take as little as two to three weeks, while other customers require more support to complete the necessary documents and can take two to three months and longer.

Do I need to register the business for PAYE?

You’ll need to register for corporation tax, PAYE for your employers and VAT. We recommend starting this process after receiving your loan, and registering your company. As tax and VAT are so complex, it’s worth hiring an accountant or financial agent to manage your affairs for you.

When will I be able to start trading?

After receiving your loan You'll be ready to trade and do business.

What is the difference between directors and shareholders?

Shareholders exercise ownership of the company through the possession of its shares and are commonly known as 'members.' Conversely, directors are responsible for overseeing the company's management and day-to-day operations.

Do I need to open a business bank account when setting up a limited company?

While it's not a legal mandate to maintain a separate business bank account for your limited company, it is strongly advisable. Given that a limited company is recognized as a distinct legal entity, the funds are considered property of the business rather than your personal assets, necessitating clear separation.

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