Starting a business of your own does not mean you have to look for investors or potential shareholders. You could put together a plan and focus on your skill as a trade instead of spending money on set up costs. Working for yourself could be one of two things:
- You are self-employed, don’t necessarily have ample space that you rent, and are responsible for your taxes.
- You are working as a sole trader, meaning that you work for yourself, trade from a location or trade with products and stock, and register with HMRC as a business type.
Becoming a sole trader has many benefits, and it can also be positive features in the future if you eventually decide to take on a partner or investors.
We asked Adam C from an SEO Service Company, who works closely with sole traders and understands how it works. He said “Becoming a sole trader has many benefits, for starters, you have full control of your business, you are your own boss. You don’t need to consult other directors or shareholders, take account of their views or compromise your own vision for the business, meaning you can develop it exactly as you choose. However, as people decide to become sole traders, they shouldn’t forget to take into consideration the downside of it too.”
Here are a few things to consider :
You don’t have to worry about huge overheads because, as a sole trader. You don’t have to hire much staff and move them all onto premises that you need to lease so everyone can work comfortably. You could trade out of your garage or even your living room depending on your business’s size and the number of items you want to keep as stock or raw materials.
You will be responsible for all your taxes, receipts and invoices among other things, but the best part is that you only need the internet at home and a computer with all the relevant programs to be able to do all of it by yourself. All the forms are now readily available for you to download. If you get stuck with any of the information, you can go onto the HMRC website or give them a call to clarify anything that you might not understand before you file your tax returns.
You will be responsible for all your paperwork, so invest in a system where you can store everything in one place. Filing for your tax returns will make it easier for you to print out and attach to your tax return forms. If you would like sound advice on handling everything the correct way without long queues, then invest in an accountant’s service once every quarter of the year. You don’t have to make them a permanent fixture on your financial board, but getting advice on the direction you are heading in or if your paperwork is in the correct order will save you lots of money and time in the long run. These paper trails include emails, digital invoices, quotes, phone call logs, automatic text message services and filing of each client’s information that can be attached for review by an accountant.
There are many upsides to having your business registered as a sole trader, but to be particular about whether this is the ideal thing for you to do, visit www.dnsassociates.co.uk for more information.