entrepreneurs find it challenging to deal with a legal minefield associated
with setting up a new company. In fact, many business groups in various parts
of the world are constantly pressing their governments on the need to reduce
the level of red tape for new startups. Ideally, this would suggest that legal
compliance is one of the reasons behind the huge statistics of dying
The UK has been listed by a number of business publications to be among the regions that provide business-friendly environments for new startups. This, however, does not imply that there are no legal requirements. In reality, you will always be on the right side of the law as a small business owner if you choose to fulfill the minimum legal requirements. You have absolutely nothing to worry about when your business has taken sufficient precautions.
So what are the minimum legal considerations while setting up a new venture? The answer to this frequently asked question will vary from one region to another. However, here are the basic minimum considerations that apply to nearly all regions:
Legal Structure of the Business
This is most probably the first legal requirement you will have to address. Every registered business must have a structure or form. You should, however, be reminded that each of the business structures has pros and cons. The one you pick will have a significant impact on the day-to-day operations of the venture.
You have 4 main forms of business to choose from while setting up a new startup. You can decide to register your venture as a sole trader, partnership, Limited Liability Company or a corporation. A sole trader is perhaps the easiest the setup. However, it is not the best alternating for a new business. An LLC would be an ideal legal structure for you. It is advisable to consult a legal expert before making up your mind.
Business License and Insurance
Many businesses require a license before they can actually begin to operate. Depending on the nature of your business and industry within which you operate, your business may need an operating permit. Of course, you may not be able to tell whether you need a license or not; an expert will. Ideally, you will require expert advice to determine which of the insurance packages is best for your new startup.
Health and Safety
Business owners have a duty of care to employees, visitors, and the general public. This is one of the basic areas any new startup owner would need a sound legal advice. With the help of an expert, you will be able to conduct a comprehensive risk assessment and put in place measures of mitigating any that may actualize. This will offer you peace of mind and protect you against heavy costs of compliance.
Contracts and Taxation
Your new business will soon begin to enter into binding contracts with a number of industry players. These include suppliers, distributors, investors, and even employees. You definitely want clear and airtight agreements.
You also have a number of tax obligations. Whenever your annual turnover will hit £85,000, VAT registration will be calling. In addition, you will also need to remit a number of taxes based on your business structure, including income tax, business rates, corporation tax, and National Insurance.
Complying with minimum legal requirements is financially healthy for your company, regardless of the size. That’s why we at WeAccountax have remained committed to quality online accounting, bookkeeping, and taxation services. Contact our seasoned accountants for best cheap accounting software in London. Through our unique business consulting services, we are more than ready to walk the challenging entrepreneurial journey with you.