What you need to do to set up depends on your type of business, where you work and whether you take people on to help.
Register your business
Most businesses register as a sole trader, limited company or partnership.
It’s simpler to set up as a sole trader, but you’re personally responsible for your business’s debts. You also have some accounting responsibilities.
Find out more about being a sole trader and how to register.
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.
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.
Rules for your type of business
You may have other responsibilities depending on what your business does.
Check if you need:
There are also rules you must follow if you:
Where you work
Check what your responsibilities are if you:
Taking on people to help
Becoming an employer
There are things you’ll need to do if you take on your own employees. You’ll have more responsibilities, including:
- running payroll
- paying for their National Insurance – but you can claim an allowance to reduce your bill
- providing workplace pensions to eligible staff
Get help and support
Story originally appeared on fca.org.uk