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Creating a limited company may possibly be the easiest part of starting up a business, especially if a self employment idea with a low start up is important for you, as it can cost just a few pounds.
Creating a limited company may possibly be the easiest part of starting up a business, especially if a self employment idea with a low start up is important for you, as it can cost just a few pounds. Whether a limited company is what you need in the very first instance is another question and one which you need to look into, preferably with the help of an expert in business start up; most local Chambers of Commerce will be more than happy to help you decide and will give their advice for free. Most people looking to become self employed and work from home begin as sole traders, but if your business grows quickly or you have a large turnover because of the nature of your business, perhaps because you are a contractor passing on a lot of your income to staff or other freelancers, there are definite tax advantages to becoming a limited company.
You can create a limited company in a matter of minutes online and it will only cost a small sum of money, typically under £20. After you have filled in all the forms and paid online, your company will be live in just a few hours and you will officially be the director of your own limited company. There are many legal responsibilities linked to owning your own company like this and you must make yourself comfortable with everything you will need to do, because they are all requirements in law and you are the only person who will carry the can if you fail to file the paperwork as and when it becomes due, even if you have appointed a company secretary. Before you get to this point though, there are some things to be considered.
You will need to have a company address; if you are planning to move soon, then choose an address which is more stable, such as a parent’s home, as you will have to tell Companies House if anything changes such as address. This address is just the ‘registered’ address and there is no recourse against it, so it can be anywhere, as long as the resident agrees. Choose your company name with care, because this is something you will have to live and trade with. Depending on what sector your home based work lies in, you will have a whole host of names to choose from, but be careful that it isn’t too near that of a competitor and also that it is easy to spell and say. Look at it in the shape of a web address – do the letters when run together spell something you would rather they didn’t. This is a surprisingly common business start up mistake. When you have checked everything to do with your company image and are happy with it, just a quick online search will give you any number of websites which will help you register your limited company and so with a few clicks, you can be off on an exciting journey of being self employed and the director of your very own limited company.