One of the first hurdles to cross when starting your own business is getting everything set up and ready to go. You’ve finally settled on a limited company over being a sole trader and want to get started, but aren’t sure of what you need to do or if you’ve covered everything. Here is our handy check list to make setting up your limited company easy.
1 – Pick your name! You can search on companies house here to check your chosen name is available once you’ve started having ideas.
2 – Register the company. You can do this directly with companies house or there are a number of websites that will do it for you. Companies house charge £13 and other services usually charge about £50. Make sure you keep any letters you’re sent out as your companies house registration code is essential to file your accounts.
3 – Part of registering your limited company will be letting HMRC know you are a company and getting set up for corporation tax. Make sure you keep any letters sent by HMRC as you will need your corporation tax reference.
4 – Set up a business bank account. As a limited company you need an account specifically for limited companies, not just an account in your personal name!
5 – Ensure you have any insurances etc you need in the company name.
6 – Pick your bookkeeping method. Are you using software or spreadsheets? Get them set up now. We always recommend Xero.
7 – Register with the ICO if you are handling client data.
8 – If your only income is from the company and your company is making a profit you may benefit from taking a salary from the company. To do this you need to register for PAYE with HMRC. If you’re not already registered for self assessment you will also need to do this with HMRC.
9 – Make a note of your company year end and make sure you remember when your year end comes around that you need to file accounts with companies house and corporation tax return with HMRC!
10 – Pick an accountant you like working with right at the beginning so you have support throughout your first year. Naturally we’d suggest ourselves but you have hundreds of options out there to pick from.
Want to work with us? Book in a call using the link up top.
