. Many businesses start ups fail because of inadequate market research. Overcrowded sectors, insufficient customer awareness, wrong location - the list of potential pitfalls is almost endless. Setting up and running a business is a time consuming task - you need to be dedicated and focused and able to structure your time in order to be successful. The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone.
We have been helping to establish new businesses for many years, whether from scratch or businesses spun out from other companies or organisations. We have remained supportive of many of the clients we met at the inception of their business and are looked on as part of their extended 'team'. We deliver the legal services required for your business start up with the benefit of a full corporate legal team, and so we offer a comprehensive range of advice and services you will require in these early stages, whether you intend to operate as a sole trader, a partnership, company or LLP. Thousands of people set up their own businesses every year. Some do it because they want to work for themselves, others because they have a great idea and have spotted a gap in the market. There are many issues to think about.
Aside from sole trader status, most small businesses set up as a Private Limited Companies (limited by shares). The term 'limited' derives from the fact that the company's finances are distinct from the personal finances of their owners (unlike the sole trader arrangement). The main advantage is that the liabilities (debts) of the company are completely separated from its directors and owners. Many people starting out, or a little way down the line, decide to register a limited company. In practice they're both the owners and directors, although the two are distinguishable in law.
There's no doubt that starting a limited company is more complicated than partnerships and sole trading, and running it is too. However there are benefits in the form of dividend payments and you could even sell the business for millions. They can be very tax efficient for individuals too, and any good accountant will be able to ensure you get the best advantage (legal of course!) from owning or directing a limited company.
Further information
A checklist on starting up your own business: business gateway delivers an effective one-stop shop to help you grow or start your business. You can call us now for advice on banking or any other aspect of running or starting up a new business. Once you decide to go into business, you will have to choose a business structure to see what kind of paperwork you will have to fill out to make your business a legal entity. There is a lot of variance among the structures in regards to their tax implications and personal liability. A sole proprietorship or partnership might be all you need to quickly and inexpensively start a business, but they leave you personally vulnerable. On the other hand, a corporation could provide you with less personal risk and liability, but cost more time and money than you are willing to invest.
Spend some time understanding the different types of structures, since they all have their pros and cons. Business Bank Account - Once the company is official, head on over to the bank and create an account dedicated to your business. While you can use a personal bank account for some forms of business, it just is not a good idea. A business bank account allows you to separate business and personal finances and provide a good level of transparency should you ever be audited. Besides, setting up a business bank account is cheap and sometimes even free, depending on the bank. Keeping good books is essential to a company since they tell you how much profit you make, monitor the progress of your company, help to recognize cycles in the market, are necessary for tax preparation, and provide detailed records when applying for a loans or selling the company.
A good CPA provides a wealth of business and tax advice, but they might not be the person to record your daily financial transactions. CPAs are expensive and bookkeeping is a fairly easy, if tedious, task. For a small business, personally recording the books initially could prove beneficial as it helps with understanding basics of financial accounting. Not to mention that saving money is often a priority of small start-up companies. If you do choose to hire a bookkeeper, it is not a bad idea to go over the numbers with your bookkeeper to gain an understanding of what is going on.
Lawyers and accountants are similar to web designers in some aspects. They may use all the right catch phrases, but some just suck. Just like with an accountant, find a lawyer who understands your business and has some relevant experience with similar companies.
Take time to meet a lawyer in person and try to build a working relationship. While not essential, a lawyer can help you create a corporation or review documents used to create your company. You could do this all on your own, but someone more knowledgeable on the subject provides peace of mind. Besides, if you ever get into real legal trouble, a knowledgeable lawyer is a good contact to have. Starting in business is never something that should be taken on lightly, but if you have the right product or service and the right approach, the rewards can be considerable. To make the best possible start to your new business, you should consider carefully the following questions: Have you prepared an objective business plan? Do you know how much money you need to start your business? Do you need to raise any business finance and if so, do you need any assistance with this? Are you fully aware of the legal requirements placed upon you as a business proprietor? Have you considered how to market/advertise your business? Would a limited company be a better option than being a sole trader, guide run your business as a company, or would a partnership be advisable? Have you considered what would happen to your business if you were unable to work, for example through ill health? Are you and your family prepared for the level of commitment required to succeed in business? If you are unsure on any of the above, we strongly recommend that you seek proper professional advice as soon as possible.
If you are looking to form a company, we can almost certainly help you. Whether or not you choose to use Coddan for any other accountancy, taxation or business services, we will be happy to assist you with your corporate requirements. To make things simple and quick, most of the searches and registrations are done online via our links with Companies House. We are also pleased to accept credit card payments for your convenience. So far, as is possible, prices are quoted on the relevant pages (see the links on the left). If you are not 100% sure which type of company is right for you, please contact us for further assistance. Which is the best structure for you - Sole Trader, Partnership or Limited Company? We can take you through all the pro's and con's.
There's quite a bit involved in making sure the right government departments are kept properly informed of what you're up to! We can fill out all the forms for the Inland Revenue, the DSS and Customs & Excise, and keep you up to date with Tax Returns, VAT Returns etc. There are many other areas we can help with; from advising on what you need to include on your business stationery to putting you in touch with reputable suppliers. The best way for us to see how we can help you with your new venture is to meet and talk about it. We offer a free initial consultation to discuss your requirements with absolutely no obligation whatsoever. We have prepared a checklist of some of the more common matters that can be easily overlooked at the start of a business and during the all-important first year: business bank account opened; assets introduced into business valued and listed; appropriate business insurance cover in place; correct business stationery in use.
Proper books and records being maintained; choice of accounting date considered; VAT registration considered. Tax Office notified; National Insurance Contributions Office notified; Local Authority notified, PAYE (or subcontractors) scheme considered. The above list is not exhaustive and not all of the points will apply. It should, however, act both as a reminder and a prompt to seek further guidance where necessary. There is a great deal of paperwork required in the correct running of a business, however small that business may be. Spending too little time on such matters can lead to serious problems (particularly with organisations such as the Inland Revenue), whereas spending too much time may lead to the business itself suffering. This is where good professional support is absolutely essential.
Starting Business UK: it can be very helpful if you have a partner/spouse who can continue in paid employment until you are able to build the business to a level where you can take out an income. How to run a successful business, it is also extremely helpful to have a partner/spouse who can take a detached view of the business, and give you their observations. Starting a Home Business: it is very easy to spend long hours on/in the business, and for you to be unable to make objective decisions when you are tired or busy, home base business & different types of businesses. Free and independent business advice to anyone thinking about starting or running a small business in England, starting a Business online, open a new business and commerce - helping the business of today.
Business Current Account is your best UK business bank account with an account opening guarantee and online internet banking. Open an account today: offering presentations for a selection of UK based current & savings account products. Company formation UK, limited company formations & registration, electronically lodge online, forming a limited company online using Coddan secure Online Ordering facility is easy.
This is our most popular package with UK residents, and includes: The submission of forms detailing your company's executive officers The registration of your £1,000 authorised share capital (a minimum of one share must be issued) Company formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Share Certificates and company Register
Economy Package
£ 82.00
Annual Maintenance Fee £50.00
This is our most popular package with EU residents, and includes: The submission of forms detailing your company's executive officers The registration of your £1,000 authorised share capital (a minimum of one share must be issued) Company registration is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees The appointment of your own candidates as directors and secretary (a minimum of two people are required) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Annual Return and Annual Account reminder The following documents will be e-mailed to you (Note: these documents are to be printed and signed): Electronic Certificate of Incorporation (PDF) Electronic Memorandum & Articles of Association (MS Word) Minutes of the First Meeting of Directors (MS Word) Share Certificates and company Register
Premier Package
£ 131.95
Annual Maintenance Fee £99.95
This is our most popular package with small business, and includes: The submission of forms detailing your company's executive director The registration of your £1,000 authorised share capital (a minimum of one share must be issued) Company incorporation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees Applicant appointment of director for company (appointed electronically) A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee company secretary service for 12 months (next year - £49.95) Annual Return and Annual Account reminder The following documents will be posted to you (these documents will be sent via Royal Mail): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting Two printed share certificates and Company Register
Deluxe Package
£ 256.95
Annual Maintenance Fee £224.95
This is our most popular package with overseas residents, and includes: The filing and registration of your company in England The registration of your £1,000 authorized share capital (a minimum of one share must be issued) Company formation is usually achieved within 6-8 workday hours (Companies House permitting) Payment of UK legal and initiation fees A registered office address for 12 months, provided by Coddan An application form for the following year's renewal of the Registered Office Address service (£50.00) Nominee Company secretarial service for 12 months (next year - £49.95) Coddan provides a company nominee director service for 1 year (next year - £125.00) The name of the nominee director & secretary will appear as a public record Annual Return and Annual Account reminder The following documents will be posted to you (these documents will be sent via Royal Mail): The original laminated Certificate of Incorporation A bound copy of the Memorandum and Articles of Association The Minutes of the First Directors' Meeting Two printed share certificates and Company' Register A pre-signed, undated letter of resignation from the nominee director A General Power of Attorney signed by nominee director An indemnity Letter for General Power of Attorney A nominee service agreement which provides for the indemnification of the nominees
Name Protection
£ 22.00
Annual Maintenance Fee £60.00
The purpose of this package: This package allows you to register a company name with Companies House and thus prevent this name being used to form a company by anyone else This package includes: The registration of a non-trading limited company with your choice of name Payment of UK legal and initiation fees A nominee director A nominee secretary A nominee shareholder A registered office address Management of the company: Coddan will file the annual return and dormant company accounts on your behalf for an annual fee of £60.00 If you do not wish to renew the management option at the end of term, the company will be dissolved
Business Start-Up: Legal Requirements
Company subscribers may be residents outside the UK You must appoint a minimum of ONE Director There is no maximum number of Directors Directors can be corporate bodies or private individuals A Director can be of any nationality Directors need not be formally trained All companies must appoint a company Secretary Secretaries can be corporate bodies or private individuals A Secretary can be of any nationality. If there is only ONE Director he or she CANNOT also be the Secretary A company must have a minimum of one shareholder who may be a corporate body or an individual No minimum paid up share capital A minimum of one share may be issued Capital may be denominated in any currency Shareholders and directors meetings may take place outside Great Britain The company is required to have a registered office in the UK
WHAT YOU SHOULD KNOW BEFORE STARTING A BUSINESS. STARTING UP IN BUSINESS GUIDE
Every year thousands of people, fired with the entrepreneurial spirit, decide to take the plunge and start their own small business. They come from all backgrounds and ages. Their businesses are based on every conceivable idea from gardening and IT to child minding, consultancy and arts and crafts. The buzz of being your own boss has few equals.
While many of these businesses succeed, sadly some fail within a short time of starting, usually due to a lack of proper preparation and planning. If only they had been able to get some quality help and new business advice.
We provide a fast online service for company registration, LTD company formation, and business incorporation in England, Wales and Scotland. When first starting-up a business there are many issues to consider. You need to decide whether or not to incorporate your business, and to choose a structure for your business. There are several types of legal business entities which you can choose to operate as. For more information on these choices, follow the links below. We advise that professional legal and financial advice is obtained before a final choice of business entity is made.
Coddan is a leading service provider in the field of English, Scottish and Irish company formation and company registration. We can help you in starting a business in England & Wales Scotland and Northern Ireland. Over 95% of our companies are incorporated within 6 hours. The electronic submission of information enables a fast company start-up satisfying all of the required legal formalities: a director, a secretary, a registered office and shareholders. Our electronic filing software has been approved by Companies House.
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Starting Up in Business Guide
£ 32.00
This is our most popular package with UK residents, and includes:
The submission of forms detailing your company's executive officers
