Ä        The first and probably most important consideration before starting a new business is in what form you choose to trade in.  There are advantages and disadvantages to each and dependant on your particular business one may be more suitable than another, your main options are;

Ø  On your own as a Sole Trader

Ø  With a partner or partners as a Partnership

Ø  As a Limited Company

Ä        If you are starting out in business for the first time you will need to register with HM Revenue and Customs.

Ä        Dependant on your business plans and expected turnover you may need to register for VAT.

Ä        You have to consider what paperwork you will need to keep in order to satisfy HM Revenue and Customs if they should ever choose to inspect you.

Ä        The business will need to keep accounting records in order to prepare its year end accounts and tax returns.

Ä        You will need to decide how you will charge your customers, whether you will need to issue invoices and whether they will have a credit account or if you expect immediate payment for your services.

Ä        If you will be offering credit terms you will need to ensure records are complete and up to date to guarantee you are paid on time.

Ä        Expenses paid out need to have paperwork or invoices to confirm the expense is indeed for the business.

Ä        You will need to know what expenses you can include and those that you can't.