Business Start Up - How to Start a Business in Norfolk
If you are looking how to start a new business in Norfolk and need some advise on how to go about it. Taylor Minns Ltd specialise in helping you understand what is involved in a new business start up. Contact us today for on0800 0235 942
What type of business should you start up?
One of the biggest questions we are asked at Taylor Minns when our customers are looking to start up a new business is "What type of business should I set up?"
We offer an initial business start up consultation which is free (up to 30 minutes). We will help you to decide whether you should be a sole trader, partnership or limited company. We can also form a limited company on your behalf. So no matter if you are a one man band or a company with fifty plus employees we can help.
Why do you need to choose a business type?
All businesses are different and have choosing the correct one for you makes the difference in how you can spend any profits, and who is liable for any debt for the business if things are not going to plan. Usually the size of the business decides this and if you are classed as a company or not.
What are Sole Traders and Partnership Businesses?
Sole trader are the smallest businesses and are one person doing everything from the day to day running, selling of your products, providing the business services and looking after the accounting and finance. The difference between a sole trader and partnership businesses is that partnerships have two or more people doing this.
The advantages of running a sole trader or partnership business is that you can decide what happens with the money you make and the tax process is not as complicated as larger scale businesses. The disadvantages are as you are responsible for the money you make through the business you are also responsible if the business owes money.
What are Limited businesses?
If the business is larger then a sole trader or partnership they are usually referred to as companies or corporations. These businesses come with different rules regarding tax, employees, profits and debts. The main difference is that the people who run the business do not need to submit there own accounts. This is done separately as a business. These companies also do not usually just have one person in charge of everything, they can have shareholders. These shareholders usually own a percentage of the business and have invested money in the company to own the percentage. As a company or corporation there are different types of tax that needs to be paid and you would also have directors who would employ staff to help with the running of the business.
If the business is a privately owned business the shareholders or investors own the business and these are known as 'Limited Liability' companies. These companies would usually be identified by 'Ltd' behind the company name. Also the company profits are kept in the company and shareholders or directors can receive payments based on the shareholdings. If the company had debt it would not affect the shareholders or directors.