Systematic and affordable company formation services in the UK

When starting your own business, there are multiple considerations to make so you have the best shot at success. The majority of these considerations are vital and the key ones you need to ask yourself are:

• Do I have a comprehensive, step-by-step business plan?
• Do I have a budget in place for the business setup costs?
• Do I have a plan for what the business cash flow will look like?
• Where will I get the necessary funding – from my pocket or an investor’s help?
• What business structure is most appropriate for me – sole trader, partnership or LLC?
• Will I be running my business from home, or will I rent/buy a commercial unit?
• Will I be hiring staff to help me out? Will they be on the business payroll or hired as independent contractors?

All of these can seem daunting when you’re starting out, so you should work with Lyel Accountants to get your business up and running.

Company secretarial services involve ongoing administrative and compliance tasks after a business is formed, and typically include maintaining statutory books, filing annual returns and financial statements, and ensuring adherence to corporate governance and legal requirements.

On the other hand, company formation services focus on establishing a new company. This includes registering the company with Companies House, preparing foundational documents (e.g., Memorandum of Association, Articles of Association), and ensuring compliance with initial registration requirements.

A new business requires some thought and planning at the outset and the type of company structure which will be most appropriate will depend on a number of considerations. The four main types of company structure are: sole trader, partnership, limited company and limited liability partnership, and each has its own pros and cons.

To help you in your decision, think about the following:

How much work do you want to run your business?
For example, as a sole trader it is easy to set your business up and there isn’t a lot of admin. Setting up a limited company on the other hand, is more detailed and you are legally required to undertake certain reporting.

What level of personal liability and risk are you happy with?
Limited companies and limited liability partnerships are created as a separate legal entity and there is minimal personal risk. With a sole trader or partnership, you are personally liable for any loss or debts.

What types of tax will you pay?
Your business structure comes with different tax implications; sole traders, partnerships and limited liability partnerships will pay income tax and National Insurance on their profits. Limited companies pay corporation tax on profits. Thresholds apply to all business typ4esl

Plans for the future
If you are going to seek funding in the future, the type of business structure can have an impact on that. It is likely that a limited company or limited liability partnership is seen to have more credibility than a sole trader when seeking investment.

The best way to start is to seek advice at the outset from someone like an accountant who has the experience to provide insightful advice.

Your choice of business structure will affect how long it takes to register the company and start trading. Registering as a sole trader is relatively quick, straightforward and low cost – you just need to register for Self Assessment with HMRC. For a Limited company, you require certain things in place such as the name of the business, a registered address, director/s details, documents which agree how you will run your company and so on and then you can register your business through Companies’ House, paying a £50 fee. This normally takes around 24 hours.

Absolutely, we would be delighted to. VAT registration is required if your turnover exceeds, or is about to exceed £90,000 in a year. The year is rolling, not a fixed term. You can register for VAT before you reach that level of turnover which can give your business a level of credibility.

You require certain information dependent upon your business structure and will need a Government Gateway user ID and password to register. Just let us know and we can help you through the whole process.

• Confirms the details held at Companies House are accurate.
• This must be filed at Companies House every 12 months

• The accounts of your business activities over the previous year including profit and loss, and balance sheet.
• These must be delivered to Companies House every 12 months

• Financial information which enables HMRC to calculate your business tax liability.
• This must be delivered to HMRC every year, even if your company has made a loss or has no Corporation Tax to pay
• This must be submitted within 12 months of the end of the company’s accounting period.

• Corporation tax is calculated on the profit your company has made.
• It must be paid to HMRC
• Corporation tax should be paid within 9 months and 1 day after the end of the company’s accounting period.

• When registered for VAT, VAT must be charged on all applicable sales
• It must be paid to HMRC.
• Most businesses report and pay it on a quarterly basis.

• Financial information which enables HMRC to calculate any personal tax liability.  Normally required for directors, shareholders and limited liability partnership members.
• It  must be delivered to HMRC every year
• It should be filed on the 31st October for a paper return or electronically on 31st January following the end of the tax year it relates to.  Any tax owed must also be paid by 31st January.