Business Start-Ups

One of the first things you need to get right is what trading style is best for you and your business. I.e.

  • Sole Trader
  • Partnership
  • Limited Company
  • Limited Liability Partnership (LLP)

We would need a discussion to help guide you as to which format is best for you now and in the future. There can be significant tax advantages of getting this right from day one.

We don’t simply form companies for people. We make forming a company simple for people. We like to give the correct advice that goes with forming a company. There are lots of things to consider when forming a company, such as but not restricted to;

  • How many directors
  • Do you want a Company Secretary (No longer a legal requirement)
  • Who should be the shareholders
  • Who will need to deal with other organisations such as the bank-ie cheque signatories.
  • Has any potential officer or shareholder had financial difficulties. This could make it difficult to open a bank account.
  • Do you need a shareholders agreement. If so where can I get one.
  • Who should own it. Ie, another company (Parent company) or individuals.
  • Which bank should we use. We are not tied to recommending one bank or another, however, we are best placed in the market to be able to say which banks are better for your business. Some banks specialise in certain areas, such as property. Some don’t like to deal with property that much. Whichever bank you choose, if you need to make deposits, you should ensure they have a branch near you.

Cash flow projections

We have tailored projection software which produces a profit and loss, a cash-flow forecast and a balance sheet. A lot of people can deal with the first 2 but not the balance sheet. It is possible to do this by spreadsheet and in many cases this is ample enough, however, if you are trying to attract sizeable investment in your business, how serious would they take you if you only did half a job? Most investors are used to certain formats for the information to be presented. Our systems output the information in a way that investors are used to. 

Business plans

As well as the financial data supporting your business venture, you should ideally prepare some sort of wording and background to your figures and how and why your business idea came to be and why it will succeed. This should contain such items as;

  • Introduction of your idea.
  • Introduction of the main people (Owners and staff) and why they are relevant to this project.
  • Market research. You need to show that your product or service will be needed or wanted.
  • How the investors can help. Is it purely financial or do you need the investors experience in certain areas as well.
  • Timelines for the repayment of the investment.
  • You should always bear in mind that investing in your business will be far riskier for an investor than if they simply stuck their money n the bank. Therefore the reward has to be higher than that they could get by putting their money in the bank.
  • If the investor is the bank, then you should take steps to ensure that you explain why their investment is safe. No bank manager wants to end up with egg on their face and have a customer defaulting on a loan.

HMRC registrations

  • All businesses need to be registered with HMRC once they have begun trading. If you don’t inform HMRC within 3 months of starting to trade, you will be liable to a penalty of £100 immediately. 
  • We can guide you through the registration process and let you know the various forms which you would have to register under. These can be different for every business. However, there are 2 main categories. Companies and individuals/sole traders/partnerships. Currently form CT41G for companies and forms CWF1, CA5601 and if you have not got a 10 digit unique tax reference (UTR) for filing your tax return, then you will probably need to file form SA1 as well.