Starting out in business

It is vital that you obtain good advice when starting out in business. The wrong choices can often prove expensive to unravel, so putting it off until the business is more established is certainly not the right decision.

But do not worry at your free initial meeting with Mackenzies some of the key areas, which we will cover, include...

Legal structure

The options include sole trade, partnership and limited company, your choice could have a big impact on your tax bill, your personal risk and how you business develops going forward.

Ownership

Involving your spouse or partner in the ownership of your business could materially reduce your tax bill but there are other several other factors that must be considered.

VAT

Even if you expect to trade below the registration threshold, it is sometimes advantageous to opt for voluntary registration. If you do register then you might need to decide which VAT schemes are best for you, for example flat-rate method, standard method, annual accounting, cash accounting and retail schemes.

Funding your business

Many new businesses are funded by money introduced by the business owner, but there are many other sources of finance including bank loans, overdrafts, sales finance, asset finance, family loans, external investors and grants.

Paying yourself

The method in which you pay yourself will influence your tax bill and your personal and business finances. The choices include dividends, salary, repayment of capital and drawings.

Once you have made your decisions we will help you to set-up your new business, depending on your choices this could include...

• Company incorporation, tax, payroll and VAT registrations.
• Introducing you to a local bank and assistance with raising finance.
• Preparing a business plan and projections.
• Setting up a bookkeeping system.
• Helping with drafting a shareholders/partnership agreement.
• Advice about taking on employees.