Starting a Business
Starting a business comes with its own legal implications and therefore, calls for proper decision making. Whether you decide to incorporate your business as a partnership, a limited company or any other structure, you must be aware of the related costs, responsibilities, and the likely liabilities. Most importantly, you must ensure that you comply with all the legal requirements related to the registration, licensing and any other legal process during the start-up.
Before starting a business, it is crucial that one decides whether to start from scratch. The alternative options are to buy an existing business, merge or do a franchise. To avoid possible future disputes, ensure that the partnership duties, rights, shareholder agreement among other legal contract matters are set out clearly before embarking on the business.
Picking a business name could impact heavily on the business success. Despite the fact that most people perceive a business name as an afterthought, it is one the most important marketing assets in the corporate world. One has to ensure that the name picked doesn’t conflict with the existing laws or conflict with certain interests. For instance, one has to ensure that the chosen name or trademark doesn’t match with those of the already existing and registered companies.
Choosing the Right Legal Business Form
Deciding on the right business form requires thorough preparations and critical thinking, especially in a situation where more than one individual is involved. At times, one may end up establishing a business relationship without intending to do so. For instance, equal personal liability to business debts may occur in a partnership.
Despite the higher costs and administrative burdens involved, most business owners prefer registering their businesses as limited companies. This is why quite a high number prefer sole-proprietorship form because of the simplicity and the straightness involved. Limited Liability Partnership (LLP) is another better alternative when forming a limited company. Tax Obligations on the different forms of business and personal liability are also some of the key considerations that shouldn’t be ignored.
It is always very important that one thinks over and over again before buying a new business or investing in a franchise. Generally, addressing all the important legal issues when starting business streamlines the process and avoids unnecessary penalties and fines.
Company Registration and Other Requirement
Regardless of the form of business, notifying the HM revenue & Customs is compulsory. In addition, it is necessary to comply with tax deductions such as PAYE and National Insurance for employees. VAT registration may also be required depending on the form of business and the nature of transactions involved. It is also important to understand the fact that some businesses require a license or unique registration processes.
In addition to the above, health, safety and environmental standards must also be given consideration. They are mostly important for businesses that are located in a particular location or premises.