WWhen it comes to how you operate and the "form" your business takes, it's fairly simple. If you make £50k or less profit a year then trading as a sole trader might have tax benefits.
Whether you go the Limited company route or form a partnership; knowing your options in terms of company formation is important.
As a sole trader you and your employees will have to pay income tax.
As a director you will have to pay income tax, but the company itself has to pay corporation tax too.
Setting up this way requires informing HMRC. It's a low risk approach while you set up and test your products and it's not too onerous in terms of paperwork, which is a plus. Your status will be "self-employed".
Forming a company brings with it certain obligations. You will need to register with Companies House. You can do this yourself (it's pretty easy) or ask a solicitor or company formation agent to do this for you. You can even buy a "pre-made" company off the shelf (so to speak). While your liability as a limited company is reduced your workload will be more in terms of obligations and paperwork.
Great if you manage them well but tricky in terms of owenership of assets and the fact that you can be liable for all partnership debts.
Not for profits and Community Interest Companies are formation types which are good for community based organisations.
Charities are carefully controlled, you will need to register with the Charity Commission and have a board of governors.
We cover all types of formation in our course and provide the legel document templates required to form the ideal vehicle for your aspirations.