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Not every new business needs to go through the formal company registration process. In fact, most small companies never need to arrange company formation unless they actually want to. There are plenty of reasons they might, like the legal protection afforded by limited liability, which can be extremely valuable to insulate company directors from bankruptcy and loss of personal assets in the event of the business failing. Some large contractors might also prefer to deal with limited and VAT registered companies rather than those with more casual arrangements. Even if a new company chooses not to go through company registration (and is not legally required to do so for any reason), Revenue and Customs do need to be made aware of its creation. The simplest arrangement for many people starting out in business on their own is to become a registered sole trader. These businesses are the primary responsibility of one individual, but they can still contract work out to other people, have a business name, and do many of the things limited companies can do. They can’t have employees like larger companies do, but many new businesses start out this way, or as a partnership. Company formation isn’t necessary, but new sole traders do need to register as self-employed. Partnerships are usually formed when a small number of people want to go into business together. Husband and wife teams often follow this route, for example. Again, formal company registration isn’t necessary, but new partnerships do need to register for National Insurance contributions and tax payments as soon as they start trading. Larger start-ups usually become limited companies right from day one. That means registering director’s details and the business name with Companies House. Tax liabilities are different to the previous two schemes, and limited companies can have employees and use the PAYE system. Registration can be arranged online quite simply. The Article is written by ukcompanyregistrations.com/ providing company registration agents and company registration Services. Visit http://www.ukcompanyregistrations.com/ for more information on ukcompanyregistrations.com/Products & Services___________________________Copyright information This article is free for reproduction but must be reproduced in its entirety, including live links & this copyright statement must be included. Visit ukcompanyregistrations.com/ for more services!
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