When forming a Limited Company make sure you get it right from the start. The following checklist shows several steps, legal requirements worth following to avoid costly mistakes.
First things first..
- Pick a company name; Check your desired name is not currently being used (this should end with Limited or Ltd)
- Purchase a suitable business domain/web address (e.g www.company.com)
- Registered Office; Register a location where official mail from HMRC and Companies house will be sent. This is typically a business premises but can be other (this cannot be a PO Box) and must be in the U.K
Now you’re ready to form your company!
- Form a Limited Company and Register with Companies House
- HM Revenue & Customs will contact you and generate your Company UTR (Unique Taxpayer Reference)
- Consider a Payroll scheme if you are to employing someone
- Turnover more than £83k? You may need to register for VAT
A little bit of admin..
- Produce a Business plan; a statement of goals and plans for reaching them
- Review funding options; self funding? Create a Director’s Loan Account
- Budgeting how will you allocate your budget?
- Organise business insurance
- Cashflow forecasting monitor cash fluctuations, growth and consider additional funding methods e.g bank loan
- Bookkeeping: Keep good records from the outset inc all expenses & income
Keep one step ahead..
- Create a business calendar; be aware of key dates e.g filing deadlines
- Check legal requirements with your local authority
- Be Aware of Corporate tax obligations
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