You're full of hopes and dream, amazing ideas and you're ready to put✨entrepreneur✨ in your Linkedin headline.

Step 1: Come up with a brilliant idea. Umbrellas for Dogs. Done.

Step 2: Choose a name and structure for your business. Picking a name that needs to be unique, memorable, and not already taken. "Bone Dry". Done.

Step 3: Most importantly, time to decide on your business structure.

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Here at current UK options:

1. Sole Trader: This is the simplest setup. It's just you, doing your thing. You keep all the profits (after tax), but you're also liable for any debts. It's perfect for freelancers or small operations.

2. Limited Company: Think of this as creating a separate entity for your business. It offers more protection for your personal assets, but comes with more paperwork and regulations. You'll be a director and shareholder of your own company.

3. Partnership: Got someone you want to start a business with? A partnership might be for you. You'll share the profits, losses, and responsibilities. Just make sure you really, really trust them.

4. Limited Liability Partnership (LLP): It's like a regular partnership wearing a limited company costume. Partners have some protection from debts, but there's more paperwork involved.

Once you've decided on your structure, it's time to register:

1. Sole traders: Register for Self Assessment with HMRC. It's like signing up for a really boring newsletter, but registering as a sole trader is free.

2. Limited companies: Head to Companies House. You'll need to register your company name, address, directors, and shareholders. It costs £12 if you register for one online.

3. Partnerships: Each partner needs to register as self-employed and the partnership itself needs to be registered with HMRC.

Then...

1. Get a business bank account: Keep your business and personal finances separate. It makes accounting easier and looks professional. Plus, it stops you from accidentally spending your tax money on an expensive coffee machine or new Uggs.

2. Find an accountant: Accounting software can be a great tool for freelancers, often providing a more cost-effective solution. However, many freelancers find that using software in combination with occasional professional advice offers the best balance, like Sage or Quickbooks. A good accountant can help you navigate tax (wtf even is tax?) and might even save you money in the long run.

3.Understand your tax obligations: Different structures have different tax implications:

Sole traders pay income tax on their profits.

Limited companies pay corporation tax on profits, and directors pay income tax on their salaries.

Partnerships split the profits, and each partner pays tax on their share.

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Consider VAT registration: If your turnover is likely to be over £85,000, you'll need to register for VAT, which I still don't understand, so we'll cover that in the next article!