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This is the knowledge base of Start Up A-Z wherein you can browse through our articles created to educate you into forming your company. Our Knowledge Base: How can we help you today? Popular Search: Virtual Office, Company Formation, Finance Featured Article Companies House Fee Increases 2026 | Start Up A-Z Following price rises to incorporate a Limited company in May 2024, Companies House have announced further fee increases from the 1st of February 2026. Read More Building Foundations for Success: Your Path to Company Formation Here at SUAZ, we believe that it shouldn’t cost you a fortune to follow your dream. We also know that starting a business isn’t cheap, which is why our company formation service is completely free - so you can keep your hard-earned cash to make your business the best it can be. Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Company Formations, Virtual Office Start Up A-Z Christmas Policy 2025 Business Trends What it takes to be a FTSE CEO Beginner's Guide The UK’s most entrepreneurial universities Company Formations Companies House Fee Increases 2026 | Start Up A-Z Start-Up Finance 5 Grants to Apply for When Starting a Business Beginner's Guide The UK’s self employed survival rates for 2025 Business Trends The companies owning the most companies Company Formations, Business Trends Companies House register drops for the first time since 2012 Company Formations How much professional indemnity insurance do I need? Load More Categories Frequently Asked Questions Frequently asked questions Home Page Registered Office Address Start Up A-Z General Company Formation Help After Company Formation Virtual Offices Address Services Business Call Answering Documents Filing SUAZ Homepage FAQs Other Services Filing Confirmation Statement Business Support Club Partnership Director’s Service Address in Manchester Compare Packages Virtual Office Birmingham Virtual Office How can SUAZ offer company formations for free? Here at SUAZ, we believe that it shouldn’t cost you a fortune to follow your dream. We also know that starting a business isn’t cheap, which is why our company formation service is completely free - so you can keep your hard-earned cash to make your business the best it can be. Wondering how we make our money? Our upsells are bonus features that can help your business get a head start. We also introduce you to other businesses and sometimes earn a commission from doing so. When can your business be up and running? We try our best to get your business up and running as quickly as possible. Submissions sent before midday usually come back to us the same day, but this can’t be guaranteed as delays do happen. We try to get all applications back within 36 hours, but if there are issues with your application such as your company name being flagged for extra checks, this can delay the process. Faqs Can't find an answer? Contact Us! help@suaz.co.uk Tel: 0330 320 1929 Bartle House, Oxford Court, Manchester M23WQ CRN: 12478555 Name Email Message Submit Thanks for submitting! Contact Us

Access expert insights and guidance in Suez UK's Knowledge Base. Our articles cover a wide range of topics to help you enhance your business strategies. List of Our Knowledge Base Articles Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office 10 Legal Considerations When Starting a Business Understand the key legal aspects of starting a business, from business structure and registration to licences and employment laws. 5 Grants to Apply for When Starting a Business Starting a business involves paying set-up costs. Check out our top grants for starting a business and learn how to apply. A Guide to Finding a Dog-walking Business Name Discover the perfect dog walking business name with our suggestions and guide to creating a name. Stand out in the industry and attract clients effortlessly. A Guide to Starting a Cleaning Business in 2024 Starting a cleaning business is a great idea if it's in demand in your area. This guide will take you through the steps required and what you need. Read more. A Guide to Starting a Dog Walking Business in 2024 Want to succeed in the household pet industry? If you're wondering how to start a dog walking business, we've created a complete guide to get you started. A Guide to Starting a Gardening Business in 2024 Want to succeed in the gardening & landscaping industry? If you're wondering how to start a gardening business, we've created a guide to get you started. A Guide to Writing Contracts as a Freelancer Learn how to write effective freelance contracts with our comprehensive guide. Protect your work, negotiate terms, and ensure timely payments. Advantages & Disadvantages of Starting a Business Looking to break free from the 9-5? Becoming an entrepreneur can be life-changing, with the potential to secure financial independence and achieve your dream. Are dog walkers in demand? Find out where the most in-demand locations are to become a dog walker across the UK’s biggest cities and towns. Can You Start a UK Business While on Benefits? If you're choosing to start a business whilst on universal credit or some other benefit, it is important you understand the cost implications. Read more here. Changes to Companies House Fees Discover the impact of Companies House fee changes on agents & SUAZ's commitment to free company formation. Stay informed & empower your business with SUAZ. Companies House register drops for the first time since 2012 The Companies House register has shrunk for the first time since quarterly reporting began in 2012. Read what it means for future entrepreneurs. Do You Need a Business Bank Account to Operate? Are you debating whether a business bank account is necessary? Start Up A-Z highlights the advantages and reasons why your venture can benefit from having one. How Difficult is it to Start a Business? The process of starting a business itself is not difficult, but running a business itself involves lots of hard work, but is it worth it? Read more. How Much Does a Virtual Office Cost? Curious about the cost of a virtual office? In our latest guide, we break down the pricing factors and provide insights into virtual office costs. Read more. How do you open a retail business? Learn how to open a retail business in this step-by-step guide from the experts at Start Up A-Z. Covering everything from market research to business planning. How much professional indemnity insurance do I need? Determine the right amount of professional indemnity insurance for your needs with our practical guide. Read more to protect your business effectively. How to Quote & Charge for Freelance Work Learn to quote and charge effectively for freelance work with expert strategies. Elevate your pricing game and boost your freelance success with Start Up A-Z. How to Set Up a Freelancer Business in 2024 Discover how to kickstart your freelance career with our comprehensive guide. From setup to success, we've got you covered! How to Start a Bakery Business in the UK Learn the key steps to successfully start your bakery business. Get practical tips and insights to turn your passion into profit. Read the guide now! 12 Reasons to Start a Business Today Thousands of people set up businesses every year, each for different reasons. But what is a good reason to start a business? Explore more here. 5 Things to Consider When Starting a Business There are a large number of considerations when starting a business, from finances to time investment and unforeseen circumstances. Read more A Guide to Starting a Buy to Let Property Business Want to set up a buy to let business? Read how this can work, from researching the market, establishing budget, to setting up your own company. Learn today. A Guide to Starting a Construction Company in 2024 Want to succeed in the construction industry? If you're wondering how to start a building and construction business, we've created a guide to get you started. A Guide to Starting a Food Business in 2024 Want to succeed in the food industry? If you're wondering how to start a food business, we've created a complete guide to get you started. Read more. A Guide to Startup Loans & Business Financing While the saying ‘it takes money to make money’ may sound like a cliché, there’s no denying that starting your own business can be expensive. Advantages & Disadvantages of Limited Liability Do you think of starting your own business? Before you dive in, it's crucial to understand the legal terms and jargon associated with forming a limited company. Are Virtual Offices Legal? Confused about the legality of virtual offices? Explore SUAZ's guide to learn about the legal aspects and regulations surrounding them. Read more. Can I Register My Business at My Home Address? Using your home address as your business address has its benefits, but there are some considerations. So what's the best option? Read more. Can a Student Start a Business Whilst at University? Many students use their time at university to experiment and start a business as a way to gain income and experience (visa dependent of course) . Learn more. Companies House Fee Increases 2026 | Start Up A-Z Following price rises to incorporate a Limited company in May 2024, Companies House have announced further fee increases from the 1st of February 2026. Do I need an accountant as a limited company? While there’s no legal requirement to use an accountant for a limited company, find out how a qualified accountant can reduce tax fines and risk of liability. Frequently asked questions on freelancing Read the answers to frequently asked questions freelancers have as you start up your own business. Get insights and advice to help you navigate freelancing. How Long Does It Take to Set Up a Limited Company? Starting a business is exciting, and the process doesn't have to be complicated. In this guide, you can get your company up and running quickly. How Much Does it Cost to Start a Business in the UK? Depending on the business, average start-up costs are about £5k - but can be cheaper when you know how. Find out how much it costs to start a UK business here. How much does it cost to set up a limited company? It can cost from £50 to set up a limited company, but at Start Up A-Z we cover this expense, meaning you can register a business for free with us. Learn more. How to Find Freelance Work & Respond to Enquiries Learn how to find freelance work and respond to inquiries with our comprehensive guide. Use our step by step advice to help set yourself up for success. How to Register & Form a Limited Company: A Complete Guide Thinking of registering a company in the UK? This guide will show you how easy it can be to form a limited company. How to Set Up a Virtual Office Ready to set up your own virtual office? Follow our step-by-step guide to creating a virtual office and enjoy the flexibility it offers. Read more. How to Start a Business with No Money If you're looking to start a business but have no money, keep reading here to find out how you might go about it.

Depending on the business, average start-up costs are about £5k - but can be cheaper when you know how. Find out how much it costs to start a UK business here. How Much Does it Cost to Start a Business in the UK? 11 min read Company Formations Table of Contents Categories What are typical UK business costs? Research and learning Equipment and premises Branding Insurance Staff and payroll How to calculate your business costs Ways to minimise your startup costs Where can I get the money to start a business? Seek professional help Chase your business dream today Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Chances are you've heard of the idea that you need to spend money to make money. But how much does it cost to start a business? From company formation and business registration costs to legal requirements, to payroll and insurance, recognising the actual costs of starting a business can make sure your idea is viable. While the average new UK startup is £5,000 , you can start your own company for a lot less when you know how. Here, we'll cover how much money small business owners need to start with and how with careful planning you can minimise these startup costs to get your business up and running without being out of pocket. What are typical UK business costs? So, how much money do you need to start your own business? You'll first need to identify the typical startup costs in the UK. We'll explore these startup business expenses in more detail below, but here are some typical costs you can expect to get you started. Company formation/legal costs: Legal costs will vary depending on the business structure you choose. In the UK, you need to register your limited company with Companies House to form your new business. You can either do this yourself through the Companies House website , which costs £50, or get us to take care of the formation process completely free of charge. Registering for taxes: You’ll need to register for Corporation Tax within three months of starting to do business. You can register for free or hire an accountant to sort it for you if you’d prefer. How much an accountant charges for small businesses will vary from £60 a month to £250 depending on your turnover and where in the UK you’re based. Business insurance coverage: What business insurance you’ll need will depend on your business structure and if you have employees. If you’re looking to hire people to work with you, you’re legally required to have employer’s liability insurance. You may also choose to take out public liability insurance if you regularly communicate with or serve members of the public. How much your business insurance will be will depend on the type you need and your cover limits. Branding: There’s no doubt you’ll want your business to stand out from the crowd. If you need help establishing your company’s image, our branding package is available for £190, which includes all your core branding elements. Alternatively, to keep costs down you may choose to hire a freelancer to put together a company logo for example. Domain: To support your professional image, you’ll want to register your domain. How much your domain will cost will depend on the type you choose - ‘.com’ sites typically range from £10 to £17 a year , whereas if you’re a tech business you may prefer a ‘.io’ domain which can cost you up to £70 a year. Now let’s explore in more detail the various startup expenses and business costs you’ll need to keep in mind when starting a business . Research and learning Not only is preparing to start a business time intensive - from researching the industry to writing a business plan - it can cost you money too. You may choose to take a management course to brush up on your knowledge and put you in good stead for your new venture. Startup costs vary depending on if you learn virtually or in-person, and where in the UK you’re based. Alternatively, there are a broad range of free online resources for you to take advantage of; from YouTube to online forums, to help you brush up on your knowledge. To make sure your business idea is viable, you might want to carry out some test trades - make sure to factor this cost into your business plan. Equipment and business premises Another startup cost to keep in mind is the equipment you’ll need to buy to get your business up and running. Maybe you’re looking to upgrade your laptop, or need a certain type of machinery. Ask yourself if you need to buy these items straight away. Could you rent the equipment initially to keep costs down? If you’re looking to stick to a budget, you may want to avoid renting a physical office space. Could you initially trade from your home to test your business idea before you commit to a workspace? If you’re looking to have a business address but want to cut down on startup costs, our virtual office package could be right for you. You’ll gain a virtual office address right in the heart of Manchester, to protect your privacy and maintain your professional image. Branding and marketing costs Another startup cost to consider is marketing costs and branding services to give your company an edge. Working with a branding or marketing specialist can help your business get noticed and increase customer loyalty, because once customers find a brand they love, they tend to stick with it. But how much does branding and marketing cost? It depends! The cost will vary depending on your marketing budget, what you're looking for and who you hire. Do you need a brand or digital marketing strategy or brand guidelines? Or just someone to help you create a logo? If you work with a branding agency, you'll usually be charged a monthly fee which will be based on the work you need doing. As mentioned, you could cut costs by hiring a freelancer to take care of your branding, market research, social media management and marketing strategy. Insurance Business insurance can protect you against accidents, theft and damage but the type of cover you need will depend on the type of company you’re starting and how you’ll run it. If you’re planning on hiring people, the only insurance policy that’s a legal requirement to have is employers’ liability insurance. This covers your business if one of your employees claims they’ve suffered illness or injury while working for you. If you don’t have employers’ liability insurance, you can be fined £2,500 for every day you go unprotected - so it’s not worth risking. The average cost ranges from around £61 per year for a single office worker, and up to £200-600 for a trade worker - but premiums will rise depending on the number of employees you have and the riskiness of the work you do. As you may expect, an office worker is cheaper to insure than a builder, for example. While not a legal requirement, professional indemnity insurance may be worth looking into. This insurance can protect you from the cost of compensating a client if you make a mistake, have been negligent, or offered them poor advice. The cost of professional indemnity can range £45 to thousands per year depending on the size of your business and the riskiness of your work. Staff and payroll Another startup business cost you’ll need to bear in mind is the costs of your staff and payroll. It’s easy to assume that your only expense as a small business will be your employees’ salary. But in reality, an employee costs more than just their wages. There are other costs of employment you’ll need to consider, including: Employer’s National Insurance Contributions: This is National Insurance you pay on your employee’s salary - which will vary depending on how much the employee earns and their National Insurance category letter. You’ll pay Class 1 National Insurance on employees’ earnings above the secondary thresholds, at 13.8%. Auto-enrolment pension contribution: In the UK, employers must offer a pension scheme for eligible employees. Employees can then choose to opt out of auto-enrolment should they choose to. Since 2019, the minimum total contribution has been fixed at 8%, with a minimum of 3% coming from the employer. Employers’ liability insurance: As mentioned, if you’re hiring employees you’ll need employers’ liability insurance as a legal requirement. How much this costs will depend on the number of employees you have and how risky your work is. PAYE payroll system: Using payroll software can make your business’ payroll easier to manage. If you choose to run payroll yourself, you need accounting software to report to HMRC. It can help you report information, work out how much you need to pay HMRC and calculate things like sick and maternity pay. The cost of these services can vary but on average you can expect to pay £10-25 per month . To help you find the best provider, HMRC has a list of software that is recognised by them. How to calculate your business costs We’ve listed several business costs above, some of which you may not have thought of - but try not to let that put you off. Thoroughly calculating how much your small business will cost can alleviate your worries and help you feel in control of things. Here are some tips to help you calculate your business costs: Identify your expenses: These are costs that are unavoidable. From insurance and employee salaries, to equipment and branding. Estimate your costs: Once you have your list of expenses, you can research how much these should cost. Some expenses will have clear costs published online, while others will be less certain right now, like your employees’ salaries. Don’t be afraid to reach out to companies and service providers to ask what they charge. Get a total cost: Once you have a list of potential costs, it’s time to add them up. From there, you can split these expenses into one-time costs and monthly expenses. One-time costs will be things you’ll need to get your business off the ground, such as equipment. Whereas monthly expenses will include salaries, office rent and bills. Plan your funding: Now you have a good idea of how much it will cost to start your business, you work out how you’re going to afford it. You may choose to take out a business loan , use your savings, or start crowdfunding. Ways to minimise your startup costs The more money you can save when starting out, the more you’ll have to grow your business over time. Here are some ways you could save money when setting up your business: Rent rather than buy: There may be some equipment you only need short-term, like a camera to take product photos. Could you borrow from a friend or rent it rather than buying one yourself? That way, you can see how much you actually use the equipment before you decide to buy. Online marketplaces: To keep costs down you could try selling your product online through sites like Etsy, eBay, Amazon or Business Support Club , before investing in your own website. Once your sales have blown up, you can get your own website sorted! Go paperless: Paper, ink and postage costs can add up quickly. You could go paperless by avoiding printing unless absolutely necessary, sending digital invoices and filing paperwork digitally rather than in a filing cabinet. Work from home: Do you really need to rent an office space from the get-go? You could test your business idea from home before you commit to a workspace. Tax relief: Look into the various tax reliefs and allowances you’re entitled to as a business owner. For example, if you’re self-employed you can deduct some of your running costs as part of your annual tax return, such as office supplies, insurance and bank charges. Where can I get the money to start a business? Now you have an idea of how much it’ll cost to start your business, you’ll need to work out how you’re going to finance your new venture. While you shouldn’t let money stand in the way of you chasing your dream, it’s important to make sure your business idea is both viable and affordable to avoid financial difficulties later on. Some ways you could finance your business include: Your own savings: While financing your business out of your own pocket may sound unachievable, with patience and accountability it can happen. Set yourself a goal, choose a savings account with a competitive interest rate and cut back on unnecessary living expenses. You’ll be surprised how much you can save! Business loan: A business loan works in a similar way to other types of loans. You apply through a bank and repay the amount through regular repayments. How much you’ll be allowed to borrow will usually depend on your credit score. Like any type of borrowing, make sure the debt you take on is affordable and that you’ll be able to keep up with the repayments. Crowdfunding: Another option to get your business up and running is crowdfunding, This involves you getting a ‘crowd’ to fund your new business. There are a few options such as donation-based funding where your contributors will donate money without receiving anything in return. With debt-based funding, those who donate will be repaid with interest. Government-backed loan: Another option is applying for the government-backed Start Up Loan . You can borrow anything from £500 to £25,000 subject to acceptance. Just bear in mind that you will be charged for your borrowing, at a fixed interest rate of 6% per year. Seek professional help If you’re looking to start a business, it’s likely you’ve been mulling over the idea for a while. To alleviate any worries, you may find it helpful to discuss your business idea with a professional. From how you’re going to afford to be your own boss, to any worries you may have, a professional can offer you valuable business advice to keep your worries at bay. You may choose to hire an accountant or financial adviser to help you make sense of your finances and check everything is in order. As you start to bring customers in and your business grows, an expert adviser can help you make informed decisions about hiring employees, investing in new equipment and keeping on top of your taxes and navigating any unexpected costs that crop up. Chase your business dream today Starting your own successful business doesn’t need to feel like hard work. Our company formation service can take the reins, from forming your own business with Companies House on your behalf, to supporting you every step of the way. You’ll have everything sorted in no time, boss! Apply to form your company with SUAZ today. Recommended Readings

Apply to form a company for FREE in 2 minutes here at Start Up A-Z! Start up your business with us using our company formations and registration service. Free Company Formation In Just 2 Minutes. Check Availability Limited Limited Highly recommended by our partners Where are you on your startup journey? Follow the SUAZ method for the best chance of success The Start Up A-Z Method Let us know how we can help Why we care about your success ⦿ Your success is our success ⦿ Your success will encourage other new business owners to work with Start Up A-Z ⦿ It makes us feel good and makes our job worthwhile ⦿ We can scale with your company and offer solutions to meet your needs as your business grows Hi, nice to meet you! We’re not just another company formation agent. We’re your Start Up A-Z We’re here from A-Z, from the moment you submit your company registration, to landing your first sale. With Start Up A-Z, you’ll have the tools and knowledge to succeed, and the support you need to thrive. 
We do more than just form your company. You’ll gain a support system to grow your business for the long haul. After all, the SUAZ team has been in your shoes. We know the ways to succeed and the things to avoid, and would love to be a part of your success story. Think of us as a free business partner who’ll have your back every step of the way. Find out more Destination Highstreet: From 0 to 7 locations in under 6 months Destination Bromsgrove came to us with a dream - to build the UK’s best high street app. Our design team built their website and created app designs to take the idea to local high street stakeholders. From there, they secured local funding to build the app with the help of SUAZ-recommended developers. Thanks to SUAZ, Destination Bromsgrove secured an effective, low-cost solution to get their name on the map.
 The result? Over 90% of high street businesses in the area now use Destination Bromsgrove to advertise their services. ⦿ 90% of High Street Businesses in Bromsgrove use Destination App ⦿ 5% of local population downloaded the application ⦿ From nothing on 12th of October to a website 21 days and a working app within 60 days ⦿ Destination have just launched in 6 other high streets. Why choose us as your company formations agent? You’ll gain more than just company formation. Some of the benefits you’ll receive include... Get an exclusive access to Business Support Club Empower your startup journey with BSC Once you’ve completed the company formation process with us, you’ll get exclusive access to a Business Support Club (BSC) account.
 You can browse BSC’s business marketplace - your one-stop shop for every service you could think of to grow your new enterprise. 

 From marketing support to accounting, you’ll find a variety of trusted suppliers who are eager and waiting to support you. Get ready to unlock your business’ full potential. Take a look at our services. We're here to help you with your new business We have articles for you to browse Do you need more information in forming a company? By Start Up A-Z Companies House Fee Increases 2026 | Start Up A-Z Following price rises to incorporate a Limited company in May 2024, Companies House have announced further fee increases from the 1st of February 2026. 3 min read By Start Up A-Z Start Up A-Z Christmas Policy 2025 1 min read Button By Start Up A-Z Companies House Fee Increases 2026 | Start Up A-Z 3 min read Button By Start Up A-Z The companies owning the most companies 10 min read Button See all articles Got Questions About Forming A Company? Words from our clients / 4.8 / 344 Reviews Frequently asked questions Home Page Registered Office Address Start Up A-Z General Company Formation Help After Company Formation Virtual Offices Address Services Business Call Answering Documents Filing SUAZ Homepage FAQs Other Services Filing Confirmation Statement Business Support Club Partnership Director’s Service Address in Manchester Compare Packages Virtual Office Birmingham Virtual Office How can SUAZ offer company formations for free? Here at SUAZ, we believe that it shouldn’t cost you a fortune to follow your dream. We also know that starting a business isn’t cheap, which is why our company formation service is completely free - so you can keep your hard-earned cash to make your business the best it can be. Wondering how we make our money? Our upsells are bonus features that can help your business get a head start. We also introduce you to other businesses and sometimes earn a commission from doing so. When can your business be up and running? We try our best to get your business up and running as quickly as possible. Submissions sent before midday usually come back to us the same day, but this can’t be guaranteed as delays do happen. We try to get all applications back within 36 hours, but if there are issues with your application such as your company name being flagged for extra checks, this can delay the process. Frequently Asked Questions See all FAQs Ask us a question! Contact Us help@suaz.co.uk Tel: 0330 320 1929 Bartle House, Oxford Court, Manchester M23WQ CRN: 12478555 Name Email Message Submit Thanks for submitting!

At just £5 +VAT, this package covers company formation, including the Companies House mandatory £50 filing fee. Its a great value with money-back guarantee. Quick Formation: Start Your Business Now Choose a name and get your company formation prioritised This package, at just £5 +VAT , covers not only a quick company formation, but also includes Companies House mandatory £50 filing fee. It’s great value and comes with a money-back guarantee. About this package £ 5 . 00 +VAT Buy now Consider this if... You need a limited company and you need it quickly. This package guarantees a quick formation and resolution or your money back. This package doesn’t include extra perks, but they can be purchased during the checkout process. What's Included Limited company formation Companies House filing fee (£50) included in the price Standard memorandum & company articles Priority Formation Digital documents pack Help & support by phone or online Business Support Club Account Key Features Priority formation No hidden fees Digital documents Professional assistance No paperwork Know more about the inclusions Company Formation Company Formations Digital Documents Pack Help and Support Help and Support BSC Account BSC Or... you can go with Privacy Package! Choose this package to use our prestigious address to register your company, instead of your home address. Also included, a business telephone number that forwards to your mobile so customers see a business, not a person. Read more Additionally, you will get: Business Landline number Manchester Virtual office address

Partnering with industry leaders like Zempler Bank, Crunch, and Simply Business, SUAZ provides comprehensive support for your startup journey. Get started now! Our Trusted Partners We’re a startup agency, and we work with industry experts to give you the best support to help you succeed. Find Out More Find Out More Find Out More Find Out More Find Out More Find Out More Find Out More Our mission is to give you the best chance of success. After all, we’ve been in your shoes. We don’t just form your company; we offer you ongoing support, guidance, feedback, business planning structures and techniques that will allow your company to grow in the long term. In turn, as our clients’ businesses grow, they trust us to connect them with vetted and approved suppliers on our B2B marketplace platform, Business Support Club . We directly measure our success by using the only metric that matters: your success. Some businesses will fail, that’s the nature of taking a risk. But by following the SUAZ method , you’ll be better placed than anyone who forms a company today not using us.

If you're planning to start a business in the UK, chances are you have tons of questions and concerns on your mind. Starting a Business: A Complete Guide 15 min read Beginner's Guide Table of Contents Categories Planning a business idea Researching your business idea and market Writing your business plan Financing your business Setting up a business bank account Do I need an accountant? Choosing your legal structure Registering your company Understanding your legal responsibilities Business Insurance Do I need business insurance? How much does business insurance cost? Choosing your business brand Designing a logo and brand identity Creating a Website Ensure your business can be contacted Strategising your growth Have a sales and marketing plan Need support? We can help Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office If you're planning to start a business in the UK , chances are you have tons of questions and concerns on your mind. You’re probably reading lots of blog posts and watching loads of videos to make sure you don’t miss anything. From creating a business plan , to finding investors and registering with HMRC, launching a business can feel overwhelming, but with some guidance and practical advice, it doesn't have to feel like hard work In this guide, we'll take you through the process of starting up a successful new venture from scratch – no matter what sector or niche you're looking to tap into. Planning a business idea The idea forms the foundation of your venture and sets the stage for its future success. But how do you generate that brilliant concept that will drive your business forward? You can solve a problem, identify a market gap, make something cheaper, or leverage your personal interests or hobbies into something new. For example, busy people crave healthy, tasty, home-cooked meals but struggle to find the time to make them. You could offer a subscription-based meal delivery service for them and solve their everyday problems. If you're looking for more inspiration and want to dive deeper into business ideas, we've put together a guide to motivate you on starting a busines s. Researching your business idea and market So, you've got an amazing business idea, and you may want to register right away and build your website and branding. But before you jump in, it's time to do some research. Trust us, it's a crucial step that is often overlooked, but doing so will provide you with certainty and confidence. Here’s how to do it: Understand your target audience: To make your business shine, you need to know who you're serving. Dive into the minds of your potential customers. Learn their needs, desires, and pain points. This knowledge will guide you in creating products and services that truly resonate with them. Remember, happy customers are the fuel that keeps your business running. Spot market opportunities: The market is like a treasure trove waiting to be discovered. Research unveils hidden gems and untapped niches. Keep an eye out for gaps in the market where you can swoop in and shine. Find those opportunities where others might have missed the mark. It's your chance to bring something fresh and exciting to the table. Check market viability: Will your business idea fly or flop? Research helps you find out. Peek into the market and gauge the demand for your offerings. Look at trends, conduct surveys, and gather feedback. This way, you can ensure that there's a hungry crowd waiting for what you're about to serve. Keep an eye on competitors: Hey, it's good to know who you're up against. Look at what your competitors are doing, how they're pricing their products, and what customers are saying about them. Learn from their successes and mistakes. This knowledge empowers you to stand out in the crowd and offer something truly unique. Find your market hotspots: Location, location, location. Research helps you find the sweet spots where your target market is hanging out. Understand the geographical nuances, cultural preferences, and local regulations that might affect your business. This way, you can tailor your approach and ensure you're hitting the bullseye with your marketing efforts. Remember, research is an ongoing adventure. Keep your finger on the pulse of your industry, especially your customers. Stay curious and adapt as needed. Writing your business plan Having a well-crafted business plan is like having a business blueprint by your side. It's not just a document to satisfy potential investors or lenders; it's a tool that guides your every move and sets you up for success. We’ve got a complete guide on how to write a business plan here, but here is a quick summary: Executive summary: This is a short summary of your business, including what it does and what makes it special. It's like a snapshot of your business that grabs people's attention. About your business: Here, you'll provide more details about your company, its structure, and what it offers. Think of it as introducing your business to someone new. Market analysis: This section is all about understanding your market and competition. You'll explore who your customers are, what they want, and how your business can stand out. Organisational structure: Here, you'll explain how your business is organised and who's in charge. It's like introducing the team behind your business. Products or services: Describe what you're selling and why people should buy it. Share the features and benefits that make your offerings unique. Marketing and sales strategies: Explain how you plan to promote and sell your products or services. It's like sharing your game plan for getting customers interested. Financial projections: This part is all about the numbers. You'll forecast your sales, expenses, and profits. It helps you see if your business can make money. Funding request: If you need money to start or grow your business, you'll explain how much you need and what you'll use it for. It's like asking for support to make your dreams a reality. Appendix: This is where you include any extra documents that support your business plan, like resumes, research data, or legal agreements. Keep in mind that although you might need to present a business plan for investors or lenders, it doesn't need to be long or complicated. It’s for yourself and it can even be in the form of bullet points. Don’t worry about simplifying your business plan. In fact, a shorter, more focused business plan can be much more effective. Regularly review and update it as your business evolves and market conditions change. Financing your business Whether we like it or not, money will always be a factor. However, you won't need to worry because of these options for raising money for your business: Bootstrapping: Use your own savings or resources to fund your business. It lets you stay in control and keep costs low, like starting a garden from seeds you already have. Friends and family: Turn to your loved ones who believe in your business idea. They can provide the initial capital and support, like a friendly hand to give you a boost. Business loans: Seek loans to start a business from banks or financial institutions. Present them with a solid business plan and show them your repayment ability. Crowdfunding: Engage with a community of backers through online platforms. They can contribute funds in exchange for rewards or a stake in your business, like a group of friends chipping in to help you achieve your goals. Angel investors: Attract investors who believe in your vision and are willing to invest their own money. They can provide not only capital but also guidance and connections, like having a wise mentor by your side. Venture capital: Tap into the world of venture capital firms that invest in high-growth startups. They can provide substantial funding and industry expertise to fuel your growth, like having a rocket booster for your business. Government grants: Explore grants to start a business , subsidies, or tax incentives offered by governments to support entrepreneurs. These programs can provide financial assistance and encouragement, like getting a special grant to kick-start your business. Speak to us: Here at Startup A-Z (SUAZ), we understand the challenges faced by startups when it comes to financing their dreams. That's why we offer our startup finance service , designed to help entrepreneurs navigate the complex world of financing a business. Consider important financial aspects such as break-even analysis and running costs when deciding on your financial decisions. In that way, you will have a rough idea how much capital you will need for your dream business. Setting up a business bank account To trade as a business, you’ll need to set up a business bank account. Plus, it adds a professional touch to your brand and enhances credibility when dealing with clients, suppliers, and investors. Let's explore some popular banking providers known for their features and benefits: Barclays : Barclays offers comprehensive business banking services, including online banking, mobile apps, and access to business loans and credit cards. They are a trusted choice for entrepreneurs seeking a wide range of banking solutions. Zempler : Zempler Bank is a popular alternative banking provider offering business accounts with features like online banking, prepaid cards, and expense management tools. They provide accessible banking solutions for businesses of all sizes. NatWest : NatWest provides business banking solutions with a wide range of features, including online banking, international payments, and business planning tools. They have a wealth of banking expertise and tailored services to meet your business needs. Mettle : Mettle, backed by NatWest, offers a digital bank account designed specifically for small businesses. Their real-time bookkeeping, invoicing, and expense tracking features simplify financial management, helping you stay on top of your business finances. Monzo : While primarily a personal banking provider, Monzo offers business accounts with intuitive budgeting tools, real-time notifications, and integrations with popular accounting software. They focus on user-centric features, making financial management straightforward. Remember to consider the fees, customer support, and additional services offered by each provider before deciding. Choose the one that aligns with your business's financial needs and long-term goals. Do I need an accountant? It depends on your circumstances. For most UK startups, hiring an accountant right away may not be necessary. In the early stages, when your business is still small and simple, you can handle basic financial tasks yourself or with the help of accounting software. This allows you to keep costs down and maintain control over your finances. However, as your startup grows and becomes more complex, it's advisable to consider bringing in an accountant. They can provide expert advice, ensure compliance with tax laws, and help you navigate the financial intricacies of scaling your business. An accountant can also help you make informed financial decisions and assist with strategic planning. Ultimately, it is highly recommended but the decision of when to hire an accountant depends on your specific circumstances. Assess the complexity of your finances, your knowledge of accounting, and your comfort level in managing financial tasks. Consulting with an accountant can provide valuable insights and guidance tailored to your startup's needs. Remember, even if you don't hire an accountant right away, it's crucial to research, keep accurate records, stay organised, and familiarise yourself with basic financial management principles. As your startup progresses, you can reassess your needs and determine the optimal time to bring in professional accounting assistance. Choosing your legal structure Choosing the right legal structure for your business is like finding the perfect fit for a pair of shoes. You want something that suits your needs and provides the right level of comfort and protection. Let's look at some common options and how they could work for you: Sole Trader: Being a sole trader is a popular choice for one-person businesses like freelance artists and photographers. It's straightforward – you have complete control over your business, and everything you earn is yours to keep. Just remember, as a sole trader, you're personally responsible for any debts or legal issues that may come up. So, it's important to stay on top of your finances and be aware of potential risks. Private Limited Company (LTD): If you're thinking of starting a limited company, you're stepping up your game! With a LTD, your business becomes its own separate legal entity. That means your personal assets are generally protected if your business faces any financial or legal troubles or what we call limited liability . But keep in mind, running an LTD involves more paperwork and formalities. You'll have to deal with things like annual financial statements and filing requirements. Taking care of these responsibilities ensures your company stays compliant and ready for success. Partnership: Partnerships are formed when two or more individuals come together to run a business. Partnerships allow for shared responsibilities, decision-making, and the combination of different skills. But here's the catch – partners have unlimited liability. That means you're personally responsible for the partnership's debts and legal obligations. The key is to establish clear partnership agreements and maintain open communication to tackle challenges together. Limited Liability Partnership (LLP): LLPs are a great choice for professional service firms like law or accounting practices. They give you the best of both worlds – the flexibility of a partnership and the limited liability protection of a company. While LLPs shield partners from personal liability for the actions of other partners, you still need to be responsible for your own mistakes. So, it's important to maintain professionalism and follow best practices to manage any potential risks. Public Limited Company (PLC): PLCs are large companies that are allowed to sell shares to the public. They are for the big players and aren’t realistic for most startups. Going down the PLC route can give you access to public fundraising and opportunities for expansion. However, be ready for more legal requirements, regulatory oversight, and higher compliance costs compared to other structures. For non-profit organisations: Unincorporated association: Unincorporated associations are like informal groups of individuals with a common goal. They're easy to set up and operate, but here's the thing – members have unlimited personal liability, and there's no legal separation between the association and its members. To navigate this, it's important to have clear governance structures and communication channels to ensure accountability and manage any potential risks effectively. Charitable trust: If you're all about doing good and managing charitable assets, a charitable trust might be the way to go. Trustees have legal responsibilities, and funds must be used solely for charitable purposes. So, working closely with trustees and following best practices is key to making a positive impact and maintaining transparency. Charitable Incorporated Organisation (CIO): CIOs are like the superheroes of the nonprofit world. They provide limited liability protection for their members while focusing on charitable activities. It's like having the best of both worlds – a company structure with a strong focus on doing good. Just remember to stick to governance requirements and manage your resources wisely to navigate the charitable landscape successfully. Company limited by guarantee: Companies limited by guarantee are commonly used by non-profit organisations, including charities. Members guarantee a specific amount in case the company winds up, providing a level of protection. By ensuring everyone understands their commitments and adopting solid financial practices, you can confidently carry out your mission. Charitable company: Charitable companies are formed for charitable purposes and come with compliance obligations and reporting requirements. By dedicating resources to meet these requirements and fostering transparency, you can effectively carry out your noble objectives. Community Interest Company (CIC): CICs are all about making a positive impact on the community. They aim to benefit society and reinvest their profits for community purposes. With a CIC, you're combining social objectives with the entrepreneurial spirit. It's like doing well by doing good! Just remember to keep your community-focused vision alive and make a difference. Remember, it's important to seek professional advice and carefully consider your specific circumstances before deciding on a legal structure. Each has its own pros and cons, and it's crucial to consider your specific situation and seek professional advice to make an informed decision. Registering your company Selecting a legal structure: First things first, let's figure out the best legal structure for your business. Whether you're leaning towards being a sole trader, forming a partnership, or setting up a limited company, each option comes with its own set of benefits and things to consider. At SUAZ, we specialise in helping entrepreneurs like you register limited companies . It's a simple process that we're well-versed in. For other legal structures, we recommend checking out the relevant government websites for specific guidance. Choosing a company name: Now comes the fun part - choosing a name that captures the essence of your business. A great name can make a lasting impression. We'll gladly assist you in checking if your desired name is available and guide you through the registration process. Handling the paperwork: We know paperwork can feel daunting, but don't worry, we're here to help. Our team will provide guidance on the necessary documents, such as articles of incorporation or partnership agreements, ensuring everything is in order and saving you from any last-minute headaches. Registering with Companies House: Companies House is the go-to place for officially registering your company in the UK. We'll help you prepare and submit the required documents, making sure everything is in tip-top shape. Consider it one less thing on your plate. Additional registrations: Depending on the business nature, there may be additional registrations to take care of, like VAT or PAYE for payroll purposes. We'll inform you about any additional registrations that apply to your specific situation and guide you through the process, step by step. For detailed guidance on how to register a limited company, we've put together a handy step-by-step guide on how to register a company . For other legal structures, we suggest checking out the relevant government websites, as they provide comprehensive guidance tailored to each structure. Here at SUAZ, our expertise lies in helping entrepreneurs like you with the registration of limited companies, and the best part? Our services are completely free. While we may not have all the answers for forming other types of companies, we're here to provide the support and guidance you need throughout the limited company formation process. Understanding your legal responsibilities When you run a limited company, it's important to know your financial and legal responsibilities to keep things running smoothly and stay on the right side of the law. Here's what you need to keep in mind: Record Your Financial Transactions: It's a legal requirement to keep track of your business's money matters. That means jotting down your income, expenses, and other financial transactions. By keeping your records up to date, you'll be ready to file your accounts and hand them over to your accountant without any last-minute stress. Prepare & File Annual Accounts: As a limited company, you'll need to submit your annual accounts. These accounts show how your business performed financially during the year, including all the ins and outs of your transactions. They're also used to calculate your corporation tax. If you're organised and your records are in good shape, preparing these accounts can be a breeze with the help of your accountant. File a Confirmation Statement: Once a year, you'll need to send a confirmation statement to Companies House. This statement is like a little check-up to ensure all the information they have about your business is accurate. If anything needs updating, make sure to let them know. Register for Self-Assessment: If you're a sole trader, company director, or part of a limited liability partnership, you'll need to register for self-assessment. It's a way for the tax authorities to assess the tax you personally need to pay based on your business's income. Don't worry, it's not as scary as it sounds! Just make sure you understand the ins and outs of PAYE and dividends if you're a company director. Register for VAT (Value Added Tax): If your business is going to hit the annual VAT threshold (£85,000) you'll need to register for VAT. This means adding a little extra tax on top of your goods or services and filing VAT returns. On the bright side, once you're VAT registered, you can claim back VAT on business purchases. Register for Corporation Tax: If your limited company is up and running, you'll need to register for corporation tax within three months of starting or trading . This tax is based on your business's profits, as reflected in your annual accounts. It's a flat rate tax, and the amount you pay depends on your profits. Understand Business Rates: Business rates are taxes imposed on commercial properties by the government through local authorities. If you own or rent a shop, office, or warehouse, you'll likely need to register for and pay business rates. But if you're running your business from a small part of your home, you can breathe a sigh of relief as you might not have to worry about business rates. Keep Companies House and HMRC in the Loop: If something important changes in your business, like your registered address, it's crucial to let Companies House and HMRC know as soon as possible. Remember, while this gives you a solid overview of your financial and legal responsibilities, it's always wise to seek professional advice or check out Company House’s website for the nitty-gritty details. Staying in the know and fulfilling your obligations will keep you on the right track and away from any unnecessary fines or penalties. Business Insurance Business insurance is like a safety net for your business, offering protection and peace of mind. It's there to shield you from potential risks and liabilities that could arise during your operations. Whether it's covering damages to your property, compensating for legal claims, or safeguarding against accidents, having the right insurance is crucial. Do I need business insurance? Yes, but the type depends on what you do. In the UK, common types of business insurance include public liability insurance, professional indemnity insurance, employer's liability insurance, and property insurance. Each type serves specific purposes and helps businesses navigate potential challenges. Public liability insurance: Covers you against claims made by third parties for injury or damage caused by your business. Employer's liability insurance: Required by law if you have employees, it provides coverage for workplace-related injuries or illnesses. Professional indemnity insurance: Protects you from claims of professional negligence or errors in your services. Property insurance: Safeguards your physical assets, such as buildings, equipment, and inventory, against damage or loss. It's important to assess your business's unique risks and consult with an insurance professional to determine the most suitable coverage for your specific needs. How much does business insurance cost? Business insurance is a must-have for your business. It helps protect you from unexpected risks and provides financial support when you need it most. The cost of business insurance can vary depending on factors like the size of your business, the type of coverage you need, and the industry you operate in. For small businesses in the UK , the cost typically falls in the range of £100 to £1,000 per year, but this can vary. When considering insurance for a limited company, keep in mind the added liability protection it offers. To get an accurate cost estimate, it's best to reach out to insurance providers who specialise in small business coverage and request personalised quotes. They can give you a better idea of the specific costs based on your unique needs and circumstances. Choosing your business brand Having a professional brand is crucial for your business. It creates a strong and memorable identity that builds trust and credibility with your target audience. A well-established brand sets you apart from competitors and effectively communicates your values and unique selling points. Your brand includes your company name, logo, tagline, visual elements, and messaging. Consistency in branding across all touchpoints is key for a cohesive and recognisable brand identity. Designing a logo and brand identity You can either hire professional design services, hire a freelancer, buy stock logos , or create a logo yourself. A professionally designed logo represents your brand effectively and becomes the face of your brand. It is highly recommended to hire a professional for this but if you have design skills, you can use vector-based tools to create your own logo. Don't forget the brand strategy and brand identity which includes the colour schemes and assets as they are what make up your visual brand. Creating a Website Most businesses today have a website to establish credibility with their customers. An online presence can help your business to reach a wider audience. Define your website's purpose, target audience, and desired functionalities. Choose a relevant domain name and a reliable web hosting provider. Design your website with a user-friendly interface and compelling content. You can use website builders or content management systems if you're comfortable or hire a web developer/designer for a more professional touch. Optimise your website for search engines and ensure it's mobile-friendly. Ensure your business can be contacted Set up a dedicated business phone and email address to establish professionalism and facilitate customer communication. Use social media platforms that align with your business to further connect with customers. Being accessible through multiple channels enhances your brand's visibility and engagement. Remember to choose phone numbers, email addresses, and social media handles that reflect your business name and brand. Strategising your growth Now it's time to plan your sales and marketing efforts to fuel your growth. The approach you take will depend on the nature of your business and target audience. Have a sales and marketing plan Running a business is an ongoing adventure, and your work has just begun. It's crucial to have a solid sales and marketing plan in place to ensure your success. This plan will help you attract customers and fulfill their needs through effective sales techniques and promotional strategies. Your sales plan should focus on understanding your target market, meeting customer demands, and finding creative ways to generate sales. Meanwhile, your marketing plan should outline how you'll spread the word about your products or services, whether it's through digital advertising, social media engagement, content creation, partnerships, or good old-fashioned networking. Keep in mind that creating and implementing a sales and marketing plan is a continuous process. Stay alert to market trends, listen to customer feedback, and keep an eye on your competition. By adapting and optimising your strategies along the way, you'll drive ongoing growth for your business. Need support? We can help Now, here's the secret ingredient: balance thinking with action. While brainstorming and dreaming up your business idea is exciting, it's crucial to put your plans into motion. Take those calculated risks, validate your ideas through market research, and adapt along the way. Here at SUAZ, we understand that starting a new business can be overwhelming. That's why we're here to support you every step of the way. Whether you need assistance with registering your company, developing a sales and marketing plan, or accessing valuable resources, we've got you covered. Our team specialises in limited company formations, making the process simple and hassle-free. Register a limited company with us for free and you'll benefit from our expertise and guidance to ensure you meet all the legal requirements and set a solid foundation for your business. But that's not all. We also partnered with an online small business platform where you can access a wealth of tools, resources, and support to help you navigate the challenges of running a business. From business planning and accounting software to legal documents and expert advice, the Business Support Club (BSC) platform is designed to empower you on your entrepreneurial journey. Recommended Readings

If you are wanting to start a business but unsure of where to begin, our step-by-step checklist shows you everything you need to get started. Explore here. What Do You Need to Start a Business? 8 min read Company Formations Table of Contents Categories Why do you want to start a business? Things you need to start a business A solid concept A foundation of knowledge An understanding of your chosen industry A plan for financing An idea of who your audience is Plan for the future What are the easiest types of business to start? Ready to get started? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Starting your own business can be a life-altering decision. You’ll be your own boss, set your own working hours and have the freedom to run things however you like. There’s no denying that becoming an entrepreneur is exciting, but without proper preparation you can run into problems that may threaten your chances of success. So, what do you need to start a business? From generating a strong idea to putting together a financial plan to make sure your dream is realistic, there’s a lot to consider. But don’t worry, our complete list of things needed to start a business will cover everything you need to feel prepared. Why do you want to start a business? So, why do you want to start a business? What are your motivations? From financial independence, to simply sharing your passion with the world, having a reason for your work can give you the motivation to succeed. After all, starting a business requires you to step into the unknown and take a risk, so having a purpose can help you push through obstacles that may come your way. Some possible motivations for starting your own business include: Following your passion: Forget working a 9-5 for a company that doesn’t interest you. By starting your own company you can work in a field that you care about. Support non-profits: You may choose to set up your company to support non-profits, charities or the local community. Achieve financial independence: While getting your business off the ground can take hard work and patience, the financial rewards are potentially huge. With determination, you can build a valuable asset that continues to grow. Gain work-life balance: Say goodbye to the regimented working week. Starting your own business can give you a super-flexible lifestyle. You may choose to work from home, say no to meetings on Fridays or work a four-day week. As well as focusing on the reasons to start your own company, it can be worth acknowledging the potential risks and challenges you could face too. What could go wrong with your business and how would you resolve it? From financial struggles to employee retention, anticipating potential obstacles with a plan for how you’d resolve them can help you prepare for the unexpected. Things you need to start a business You can’t rush into the practical side of things like registering your company until you understand the legal requirements to start a business. Here, we’ll cover everything you need to have ready, from coming up with an idea to brushing up on your industry knowledge. A solid concept It all starts with an idea. Maybe you’re the artistic type and have been told your graphic design skills could easily make you money. Or perhaps you’ve found a gap in the market for a product you’re sure will be a hit. It’s important to know what business you want to run and why you want to run it. If you like the sound of being your own boss but you’re struggling for ideas, try bringing it back to basics. What interests you? Note down your hobbies and passions and brainstorm potential business ideas from them. For example, if you’re an animal lover you may want to start a dog-walking service, or open a cat cafe. Or maybe you’ve recently come across a business that you felt could be doing things better. To get yourself in the right headspace, try immersing yourself in the business world. You could read biographies from inspirational entrepreneurs to see where their bright ideas came from. Or you could ask your family and friends what they think you’re good at, to see if your strengths are something you could build on. Inspiration is sure to strike when you least expect it! A foundation of knowledge You can’t jump head-first into managing your own company without knowing the ropes, right? A great way to prepare for starting a business is to brush up on your knowledge. Read up on the legal terms often thrown around like limited liability so you aren’t left feeling out of your depth when your company is formed. You could attend seminars from business experts, take a management course to broaden your knowledge and even reach out to entrepreneurs through platforms like LinkedIn to ask questions. Alternatively, there are a wide range of free resources across the web to help you develop your expertise. An understanding of your chosen industry Depending on the type of business you choose to start, you may have to adhere to certain legal requirements, so it’s important you understand the ins and outs of your industry beforehand. For example, if you’re looking to start your own restaurant and are planning on serving alcohol, you may require an alcohol licence. Want to start a hairdressing business? There’s certain legislation that hairdressers must adhere to, including the Control of Substances Hazardous to Health law which applies to the use and storage of hazardous substances, such as peroxide. Being clued up on the legal requirements surrounding your chosen industry means you won’t be caught out or left unaware of certain regulations in your field. For example, as soon as you become an employer you need to take out employers’ liability insurance. This is to cover your business should a staff member claim they’ve suffered illness or injury from working for you. If you weren’t aware of this and weren’t insured, you could be fined £2,500 for every day you go unprotected. With this in mind, it’s important to be aware of industry regulations to avoid a fine or prosecution. A plan for financing It may be early days, but having an idea of how you’re going to fund your business can save you some stress further down the line. There’s no denying that starting a company can be expensive, but you shouldn’t let that stop you from chasing your dream. Planning ahead can help you work out if your business idea is affordable. Here are some options to consider to help you finance your company: Business loan: A business loan works similarly to other types of loans. You’ll apply for it through a bank and repay the amount through regular, usually monthly, repayments - with interest added. It’s important to make sure you can afford to take on the debt and that you’ll be able to keep up with your repayments. Start Up Loan: You could apply for the government-backed Start Up Loan of £500 to £25,000 to help you start or grow your company. You’ll be charged for your borrowing at a fixed interest rate of 6% per year. Crowdfunding: You could try crowdfunding to raise money for your business. This involves you getting others to fund your business. Different types of crowdfunding include donation-based funding where contributors donate money without receiving anything in return. With debt-based funding, your contributors will be repaid with interest. Your savings: Financing a business with your own money may sound impossible, but with time and determination, it can be achievable. Set yourself a savings goal, hold yourself accountable and cut back on your spending. Check out our guide on how much it costs to start a business for more information. An idea of who your audience is Understanding your ideal customer can help you grow your business and retain your customers long-term. To do so, you’ll need to identify your target market - the specific group of customers who are most likely to interact with and buy from you. They’re likely to share certain characteristics such as age, income, behaviour and gender. And they’ll usually have a problem that your business can help them solve. As you haven’t yet started your business, identifying your target market may feel tricky. A great place to start is looking at your potential competitors. What brands would you like your company to mirror? Where do they advertise and what messaging are they using? From there, you can understand who your competitors are targeting, to then go on to target the same group in a better way. Plan for the future You’ve not even started your business yet, so us telling you to think about what will happen to it in the future may sound irrelevant right now. But having an idea of the future of your new venture can help you feel prepared. Is this new business your planned career for life, or are you aspiring to start multiple companies? How will you measure success? Are you looking to eventually gift your business to your children? Try to break down your goals by time. Where do you want your business to be in two years time? Then map out your goals for the next five and ten years. Having an idea of what your company’s future will look like can keep you motivated to succeed. What are the easiest types of business to start? Some types of business are naturally easier to start than others. Those that have low startup costs and require little training are easier to get going than a company that needs a lot of investment and supply management, for example. While starting any business isn’t a walk in the park, using a platform like eBay or Etsy (or Business Support Club if you’re looking to sell to other businesses) to get your venture going can keep costs down and give you less to think about. Using an online marketplace costs very little upfront so if you decide your business idea isn’t working out, you won’t be left out of pocket. Looking to test the waters before you commit to your business full time? You could consider trialling your idea as a side hustle alongside your current job. This could mitigate the risk of failure further down the line, as you’ll be able to see if you’re making enough money to commit to it full time. Once you know your business is performing well, you can make the move to expand it by hiring employees, growing your brand and being your own (full time!) boss. Ready to get started? Once you’ve ticked off all the above, chasing your dream shouldn’t feel too far away. Feel ready to get your company off the ground? Our guide to starting a business will cover all the next steps you’ll need to take. Starting your own business is a lot to get your head around and it’s easy to be left feeling overwhelmed. But you don’t need to do it on your own. Our company formation service can take care of the tricky stuff, like forming your business with Companies House, so you can focus on your exciting new start. Apply to form your company with us today. Recommended Readings

While there’s no legal requirement to use an accountant for a limited company, find out how a qualified accountant can reduce tax fines and risk of liability. Do I need an accountant as a limited company? 12 min read Company Formations Table of Contents Categories How can an accountant help a limited company? Company tax return Filing annual accounts Advise on accounting software Bookkeeping VAT returns Payroll Reduce room for error Reduce tax Is it worth getting an accountant for a limited company? Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Starting a limited company comes with a lot of big decisions to make, especially around your financial responsibilities. From tax filing to legal and compliance requirements, there’s a lot to get your head around, especially if you’re new to entrepreneurship. If you’re asking the question ‘Do I need an accountant as a limited company?’, chances are it could benefit you. In fact, a whopping 92% of SMBs use the service of an accountant , with half of them using their services at least weekly. Using an accountant can alleviate any worries you may have about managing your business’ finances, so you can focus on the exciting stuff like steering your business towards success. We’ve put together this blog which covers the role of accountants for limited companies, the key benefits they can offer and whether it’s worth the investment for your new enterprise. How can an accountant help a limited company? Starting your own business often requires you to wear several hats, especially to begin with. You’ll be figuring out how to market your product or service, becoming your own boss and running the day-to-day operations. Another key responsibility is managing the financial side of the business, which can feel daunting. Just some of the financial responsibilities you’ll need to take care of as a business owner include: Dealing with Corporation Tax: Calculating and paying your Corporation Tax is an important responsibility - should you miss a deadline or make an error, you may need to pay a penalty. End-of-year accounts: You’ll need to prepare and file your annual accounts with Companies House and ensure they comply with accounting standards. Managing VAT returns: You’ll need to manage VAT invoices, calculate VAT due and submit your returns to HMRC. You’ll usually need to submit a VAT return to HMRC every 3 months, known as your accounting period. Your company’s payroll: If you have employees, you’ll need to take care of your company’s payroll. This involves calculating income tax, National Insurance Contributions (NIC), and making sure your employees are paid the right amount on time. Handling HMRC and Companies House filings: You’ll need to keep up with your Companies House and HMRC filings to stay compliant with legal requirements. Your personal tax return: You’ll need to submit a personal tax return each year which can feel complicated, especially if your income includes money from other sources or dividends. Your annual confirmation statement: You must file a confirmation statement at least once a year to ensure the details Companies House holds about your company are up to date. Ongoing bookkeeping: Keeping records of all your transactions and bank statements as a business is key for financial health and compliance. Quite the list, isn’t it? These tasks may sound unnecessary or time-consuming, but are crucial for running a successful business and ensuring you adhere to legal requirements. But you’ll be relieved to hear, should you choose to hire an accountant, the above will all be taken off your hands. Working with a finance professional means you can delegate these responsibilities to an expert who has the knowledge and experience to manage them correctly. This can alleviate any fears of filing something wrong or missing a deadline, so you can solely focus on growing your business. So, if you’re asking ‘Can I do my own accounts for a limited company?’, the answer is yes, but you may benefit from trusting an expert to take care of the financial side of things for you instead. We’ll cover the ways an accountant can help you in more detail below. Company tax return While you don’t legally need an accountant to help file your tax return, having one can give you the peace of mind that all the boxes are ticked and no mistakes have been made. They can help you file your company’s tax return by accurately calculating your company’s profits, expenses and any allowable deductions. They’ll ensure all of your financial records are organised correctly, and use this information to calculate how much corporation tax you owe. Accountants are well-versed in all areas of tax, so are confident in handling complex tax calculations. This can be a major time saver, especially as a new business owner with a never-ending to-do list! An accountant can free up your resources, so you can focus on the important and more exciting stuff like marketing your business and keeping clients happy. Filing annual accounts As a limited company , filing annual accounts is a crucial responsibility and should you miss a deadline, you may need to pay a significant penalty. Hiring an accountant will ensure that your annual accounts are prepared correctly and filed on time, so you can avoid those costly late submission fees. Just some of the ways an accountant can help with filing annual accounts include: Sticking to deadlines: As a business owner, you’ll likely have endless things to remember, making it easy to forget filing deadlines. Your accountant will prepare your annual accounts well in advance, so you don’t need to worry about missing the deadline. Avoiding late fees: As mentioned, if your accounts are filed late Companies House will impose automatic penalties starting at a whopping £150 for being just one day late . These penalties increase significantly the longer the delay. Hiring a professional means you won’t worry about missing a deadline and being out of pocket. Trusting an accountant to file your annual accounts means you can focus on running your business with the peace of mind that your accounts are all taken care of. You’ll know you comply with legal requirements and won’t face any unnecessary fines. Advise on accounting software Accounting software can streamline repetitive tasks such as invoicing and payroll, saving you time and minimising the risk of errors. Reliable software allows you to access your real-time financial data and make informed business decisions. Accountants are experts in their field, so you can trust their opinions when it comes to choosing the best accounting software for your business. Given their background and expertise, as well as their understanding of your business’ needs, they can recommend software that best suits you. You’ll know that your chosen financial management tools aren’t just effective but also the right choice for your unique business’ needs. Bookkeeping Bookkeeping is a vital aspect of business management and can be time-consuming and complicated at first. That’s where an accountant can help. They can handle your day-to-day bookkeeping tasks, from preparing financial statements to recording transactions. You’ll never need to worry about your financial records not being accurate or compliant, as you’ll be working with an experienced professional. Trusting an accountant to handle your bookkeeping responsibilities can streamline your bookkeeping processes, ensure your books are updated regularly and help you plan for future investments. Perhaps you’ll look to expand your business or buy new equipment - your accountant can take a look at your accounts and help you plan for your financial goals. VAT returns Value Added Tax (VAT) is an important financial obligation for many businesses. As a business, you need to register for VAT if your VAT-taxable turnover exceeds £90,000. You can also choose to register for VAT if your turnover is less than £90,000. As a VAT-registered business, there are several conditions you must adhere to such as keeping records of how much VAT you pay for things you buy for your business, reporting the amount of VAT you charge your customers and the amount of VAT you pay to other businesses. Your accountant can ensure that your business handles VAT correctly, pays it on time and ensures you avoid any fines or penalties. They’ll track VAT on any applicable transactions and make sure your business claims all allowable VAT. They’ll also ensure that you meet each VAT return quarterly deadline. Payroll Regardless of the size of your company, managing your payroll correctly is crucial. Payroll management involves making sure your employees are paid accurately and on time, as well as ensuring the correct amount of tax and National Insurance is deducted and paid to HMRC. Here are just some of the ways an accountant can support you with payroll management: Paying your staff: An accountant can calculate the correct wages for all your employees, including the more complicated stuff like overtime and bonuses. PAYE (Pay As You Earn): Your accountant will handle the tax side of things, making sure the correct amount of income tax is deducted from employees’ and directors’ pay under the PAYE system. Meeting deadlines: Accountants ensure everyone is paid on time and also make sure all tax and NIC payments to HMRC are delivered on time, so you won’t need to worry about any late fees or penalties. Reduce room for error An accountant’s job is to do the finance side of things correctly. This means you won’t need to worry about making a mistake on any important forms, missing a deadline, or misreporting information. They’ll double-check your financial data before it’s submitted to Companies House or HMRC and also handle any complex transactions to give you the reassurance that they are taken care of correctly, in line with tax laws. Speaking of tax laws - these regulations frequently change and it can be tough to keep up with as a business owner. With an accountant, you won’t need to worry about keeping up to date with the latest tax legislation - that’s their responsibility. You’ll have the peace of mind that you’re always compliant with any new rules or changes. Reduce tax A key benefit of working with an accountant is their understanding of tax rules and how you can minimise your tax as a business. They can advise you on any potential tax deductions, such as making the most of your director’s pay by paying yourself a smaller salary and taking the majority of your income as dividends. They can also explain which deductible business expenses you’re entitled to claim, such as office costs and travel expenses. With an accountant’s support, you’ll know the most tax-efficient way to pay yourself as a business owner, as well as any changes in tax law that may affect your business. Is it worth getting an accountant for a limited company? It’s understandable to want to keep costs down when starting a new business. But hiring an accountant for your limited company could save you significant money long term. When it comes to managing complex financial tasks such as tax returns and ensuring compliance with legal requirements, an accountant can be a huge asset to your business. An accountant’s expertise can save you time, be a source of knowledge and prevent any errors that could cost you significant money in penalties. It sounds like a worthy investment to us. Looking for the right accountant for your business? Our business partner, BSC, can match you with an accountant that understands your business needs. Alternatively, if you’re thinking of taking the leap and starting your own business, SUAZ is here to help. With us, you can form your company for free (yes, really!) and we’re here to support you at every stage. Form your company with SUAZ today and experience a journey like no other. Recommended Readings

Understand the key legal aspects of starting a business, from business structure and registration to licences and employment laws. 10 Legal Considerations When Starting a Business 15 min read Company Formations Table of Contents Categories 1. Choosing a business structure 2. Registering your business 3. Understanding business licences and permits 4. Complying with employment law 5. Protecting intellectual property 6. Understanding tax obligations 7. Complying with health & safety regulations 8. Data protection & privacy 9. Drafting contracts 10. Insurance requirements Launch your company with Start Up A-Z Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office So, you want to start your own business – good for you. And you have a smart idea – even better. Becoming an entrepreneur can be a rewarding journey in any number of ways. But as exciting as it can be, starting your own business also comes with a number of legal considerations you need to be aware of. Understanding these legalities can protect your business from risk and keep things running smoothly for you. Neglecting your legal requirements can result in fines, getting sued or even closure. With a little care and attention, you can avoid any legal pitfalls and concentrate on turning your business into the success it should be. So let’s walk through the ten essential legal considerations when starting a business . 1. Choosing a business structure To hit the ground running with your new venture, one of the first and most important steps is choosing the right legal structure for your business. This will affect your tax bills, your level of personal liability and the admin you need to complete to stay compliant. While there are many number of legal structures, in the UK, the most common are sole trader, partnership, limited company and limited liability partnership (LLP). If you choose to operate as a sole trader, you’ll have complete control over your business, but it also comes with unlimited personal liability. This means any debts or legal claims made against your business are your personal responsibility, putting assets like your house or car at risk. A limited company, on the other hand, offers the benefit of limited liability (hence the name) and your personal finances are treated as separate from those of your business. Limited companies need to be registered with Companies House, and are the most common structure for business owners looking for investment or with ambitions to be the next Elon Musk. Partnerships are another option, where two or more people share the profits and responsibilities) – or LLPs. These combine aspects of partnerships and limited companies to offer limited liability while retaining the flexible structure of a traditional partnership. With various options out there, you need to weigh up the pros and cons of each type of business structure before you make a decision. Take a look at our guide to self employed vs limited company for more information. 2. Registering your business Once you’ve decided which business structure you’re going with, you need to register it properly – failing to do so can land you in a heap of trouble. The registration process, which will differ depending on the structure you’ve chosen, is a key step in establishing your business as a legal entity. For sole traders, the process is relatively straightforward. You’ll need to register with HMRC to notify them that you’re self-employed and file a self-assessment tax return every year. As for limited companies, registering with Companies House will require a unique company name, a registered office address, and at least one director. During registration, you'll also need to outline a memorandum of association, which details the company’s purpose and structure, and the articles of association, which govern how the company is run. If your business is a partnership or LLP, you’ll need to register with HMRC for tax purposes as well, and it's highly advisable to have a formal partnership agreement in place to avoid disputes later on. 3. Understanding business licences and permits Depending on what kind of business you start (and the regulations of your local council), you may need to have necessary licences and permits. For example, if you’re opening a café or restaurant, you’ll need a Food Business Registration with your local authority, which will involve regular inspections to make sure you meet food safety standards. Or if you’re intending to open a pet shop to sell animals, you must obtain a licence from your local council to make sure you comply with welfare standards. See our full guide on how to start a pet shop business for full setup steps. If your business involves playing music in public spaces, whether in a shop or restaurant, you’ll need a Music Licence (PPL PRS) to legally play music in your establishment (so that music you hear in the background at your local coffee shop isn’t free). There are also sector-specific permits, such as environmental permits for businesses that deal with waste or hazardous substances, and alcohol licences for selling alcohol. 4. Complying with employment law If you plan on hiring staff, you’ll need to familiarise yourself with the various employment laws that govern your responsibilities as an employer. Employment law in the UK is extensive to say the least, covering everything from employee rights and pay, to working conditions and anti-discrimination policies. Any business that hires employees needs to provide them with a written contract outlining their role, duties, hours, salary and conditions of employment. This contract needs to comply with UK law, providing statutory rights such as sick pay, holiday entitlement and pension contributions. Employers also need to comply with National Minimum Wage or National Living Wage regulations, as well as anti-discrimination practices. 5. Protecting intellectual property No matter what assets your business may have, chances are its intellectual property (IP) will be one of its most valuable – and it needs to be protected. Intellectual property may include your business name, logo, product designs, inventions, and even your website’s content. Without the proper protections in place, your competitors could simply rip you off. To stop this from happening, there are various intellectual property protections available: Trademarks safeguard your brand’s name, logo and other symbols that distinguish your products or services from others. Filing for a trademark with the UK Intellectual Property Office means no one else can legally use your business identity without your permission. Patents protect inventions, processes, or any new products you create. If your business develops a unique product or technological innovation, a patent prevents others from making, using or selling your invention for a set period of time. Copyrights , on the other hand, cover original works such as written content, music, designs or software. Registering your copyright ensures your creative works are legally protected. 6. Understanding tax obligations Every business in the UK, regardless of its size or structure, needs to register with HMRC, file annual returns, and pay the appropriate taxes . Failing to meet these obligations can result in fines, penalties, and investigations. If you’re a sole trader, you’ll need to register for self-assessment and file a tax return each year, after which you’ll be taxed on your profits (minus allowable business expenses). Limited companies are required to pay corporation tax on their profits, as well as submit annual accounts and a company tax return to HMRC. In addition to corporation tax, you may also need to register for VAT if your business’s turnover exceeds the VAT threshold of £85,000. VAT is charged on most goods and services, and you’ll need to submit quarterly VAT returns to HMRC. You’ll also be responsible for paying National Insurance contributions, both for yourself as a business owner and for your employees. Working with an accountant could save you a lot of headaches when it comes to tax, as well as potentially saving you a lot of money in the process. 7. Complying with health & safety regulations In accordance with the Health and Safety at Work Act 1974, businesses need to conduct comprehensive risk assessments to identify potential hazards and implement measures to reduce accidents in the workplace. These measures can include engineering controls, administrative changes or providing personal protective equipment (PPE). If you have five or more employees, you need to have a written health and safety policy detailing your approach and responsibilities. Regular training on safe practices and equipment use is vital, and you must display the Health and Safety Law: What You Need to Know poster in your workplace. 8. Data protection & privacy As the online world has expanded, so have the data privacy laws that govern it. If your business is going to collect any kind of personal data – or even have cookies on its website – it needs to comply with the GDPR (General Data Protection Regulation). The GDPR mandates that data must be processed fairly and transparently, with explicit consent obtained from individuals. Businesses need to implement data protection measures like encryption and secure storage to safeguard against breaches (and if a breach occurs, it needs to be reported to authorities within 72 hours). Businesses also need to provide individuals with the right to access, correct or delete their data if they wish. With Meta having received a €1.2 billion fine in 2023 for breaching GDPR, data privacy isn’t something that businesses should take lightly. 9. Drafting contracts While verbal agreements may be sufficient when things are going well, if trouble appears (and it’s a lucky business that doesn’t encounter any), contracts are the best way to avoid disputes. They make sure there’s full and legally binding clarity in business relationships, specifying everything from the scope of work to payment details. That said, given the complexity of legally binding language, it’s a good idea to have a legal professional draw up your contracts to make sure they’re both meaningful and enforceable. 10. Insurance requirements You wouldn’t buy a home without buildings insurance, and you shouldn’t start a company without it either. While there are numerous types, some of the key policies you should think about include: Public liability insurance covers claims for injury or damage to third parties. If you’re a builder, for example, and accidentally drop half a tonne of bricks onto a nearby car, the vehicle's owner could make a claim to cover the cost of repairs. Employers' liability insurance is mandatory if you have employees, covering work-related injuries or illnesses. If one of your employees is hurt while operating machinery because of inadequate machine maintenance, poor training or a lack of protective equipment, you may be held liable. Property insurance protects physical assets from damage due to fire, theft or disasters. Professional indemnity insurance is important for service-based businesses, covering claims of negligence. From breaching confidentiality to delivering incorrect advice, indemnity insurance keeps you secure. Product liability insurance is necessary if you sell products, covering claims related to faulty items. For example, a customer claiming they got food poisoning by the business failing to meet food safety standards could land them in hot water extremely quickly. Launch your company with Start Up A-Z While the legalities of starting a business may seem daunting, with Start Up A-Z at your side, you have a trusted partner to guide you through every step. More than just offering company registration services, we deliver comprehensive advice on the legal aspects of how to set up a limited company. Whether you need help with business structure, licences, tax or anything else for that matter, our team provides personalised support tailored to your needs. Form a company with us today for free , and take your first step towards a rewarding new future. Recommended Readings

Discover how to kickstart your freelance career with our comprehensive guide. From setup to success, we've got you covered! How to Set Up a Freelancer Business in 2024 15 min read Beginner's Guide, Company Formations Table of Contents Categories Which freelance niche is right for you Legal and financial considerations Financial Considerations Understand the 'bottom line' What equipment will you need? Do you need business insurance Identifying your branding and positioning Setting rates and managing finances Finding and retaining clients Tips for managing time and workflow Start your business Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office Working for yourself sounds like a dream, right? You can wave goodbye to the standard 9-5 and any toxic work culture, by becoming a freelancer. Freelancing has become increasingly popular across the UK, with 13.6% of people aged 16 and over doing at least some freelancing. This rise in popularity has empowered individuals to take charge of their careers with flexibility and autonomy, across a broad range of industries. You may have been weighing up going freelance for a while now but are hesitant to take the plunge. Or maybe you’re ready to commit to freelancing and have handed in your notice at your current employer, but have some questions on where to start. If you’re wondering how to set up freelance and begin your journey to independent work, we’re here to help. We’ve put together this in-depth guide on how to start freelancing, to answer any questions you may have on how to kickstart your new venture. If you consider yourself as a literal beginner, our guide on how to become a freelancer with no experience lists down all the tips you need to know for expert guidance. With our tips and tricks, you’ll know how to build a freelance business and the steps you should take to turn your passion into profit. Which freelance niche is right for you? If you’re asking ‘How can I start freelancing?’ the first step is deciding which industry or niche to operate in. Perhaps you’re a skilled copywriter looking to share your craft with the world, or a talented video editor looking to tell stories through video. To decide which area you’re looking to pursue as a freelancer, you’ll need to identify your skills and expertise, as well as understand the market you plan to enter. Here are some of the ways you can identify the right freelance niche for you: Assess your interests and skills: If you’re looking to start freelancing and break free from working for an employer, you’ll want to make sure you’ll enjoy the work you’ll be doing. Choose a niche that aligns with your interests and values, as you'll be more likely to succeed and find fulfilment in your work. Start by making a list of your key skills, expertise and motivations. Perhaps you’re a great communicator, a natural wordsmith or a born creative. Reflect on your professional background and the knowledge you have that you could share with potential clients. Evaluate market demand: Market demand is crucial for profitability. Make sure there’s a need for your service by looking at industry trends and any pain points that your service could help to solve. Consider factors such as market growth and competition in your chosen industry or local area. Consider your USP: What will make your freelance business stand out against competitors? Your unique selling point is what will set you apart from other freelancers and encourage potential clients to choose your expertise over others. Try things out: If you’re torn between different niches, why not test the waters? You could take on several smaller projects or freelance gigs to help you decide which you prefer. This will not only give you experience, but you may also develop connections which you can contact again once you’ve made your decision. Open to change: Remember, your freelance niche doesn’t have to be set in stone. As your freelance business develops, you may discover new interests or opportunities that lead you to change your service or expand to different niches. Try to stay flexible and be open to new possibilities that come your way throughout your freelance journey. If you’re searching for how to start freelancing, chances are you already work in a certain industry or profession that you’re looking to freelance in. But if you’re stuck for a business idea, take a look at our guide to choosing a business idea for inspiration. Steps to starting a freelance business So, you have your business idea and the motivation behind you, but how do you go about starting your freelance business? Below, we’ve put together a list of how to start freelancing, step-by-step, so you can tick off each task as you go. Understand the legal and financial considerations Getting your head around the legal and financial obligations of your freelance business can be daunting, but it doesn’t need to leave you feeling overwhelmed. If you’re searching for how to register a freelance business, the first step is choosing a legal structure. As a freelancer, you can choose to operate as a sole trader or as a limited company. One of the biggest differences between being a sole trader and a limited company is limited liability . As a limited company, you gain limited liability which means your personal assets are protected should your business face financial hardship. This is because limited companies are treated as separate legal entities from the business owner, whereas as a sole trader, you’re personally liable for any business debts. If you decide to set your freelance business up as a limited company, you’ll need to officially register your business with Companies House. You can choose to register your business yourself for a £50 fee, or you may prefer to use a company formation agent like SUAZ to take care of the hard work for you. Here at SUAZ, we cover the cost of your business registration, meaning forming your limited company won’t cost you a penny. What’s more, you’ll gain our support and expertise should you need it, every step of the way. Financial considerations As a freelancer, it’s vital that you understand what tax applies to your business, so you aren’t left caught out further down the line. Here are some key financial considerations to keep in mind: Business tax: Depending on the legal structure of your business, you’ll be liable to pay certain types of business tax. For example, as a limited company you’re legally required to pay Corporation Tax. National Insurance: You’ll pay National Insurance (NI) contributions on your salary, should you earn more than £12,570 a year. VAT: If your VAT-taxable turnover is more than £85,000, you’ll need to register for VAT. VAT is charged on ‘taxable suppliers’ such as goods and services and selling your business assets. For more information on the tax you may be liable to pay, check out BSC’s guide on small business tax . You may choose to hire an accountant to keep your business finances in check. Here at SUAZ, we can help match you with a vetted and reliable accountancy supplier , through our BSC platform. Understand the ‘bottom line’ Your ‘bottom line’ is the minimum amount of money you need to get by each month. Calculate how much money you need to cover your bills and day-to-day living costs. From there, you’ll know your target amount and can work out what you need to do to achieve it. As a freelancer, you may be waiting around to receive payments from clients at times, so it’s important to check in with yourself financially on a regular basis. How much money do you have due to come in for recent or upcoming work? Make sure you have enough work lined up to achieve your bottom line. What equipment will you need? As a freelancer, the equipment you’ll need to carry out your work will depend on the nature of your business and the industry you operate in. Generally speaking, you may need the following equipment: A reliable computer: Choose a computer or laptop that fits your budget and responsibilities. For example, if you’re a graphic designer make sure you have a high-performance computer that can process large files. Software: Depending on the industry you work in, you may need to invest in specific software to deliver the best service. Your workspace: Decide where you’ll work from and how you’ll make your workspace somewhere you want to work from. If you work from home, make sure you have an assigned workspace so you can separate your work from your home life. Looking to maintain your privacy and boost your professional image? A virtual office address may be the solution, allowing you to work from anywhere with a business address to your name to boost your professionalism. Communication tools: Make sure you have the right tools to hand to keep in touch with potential clients, from messaging apps like Skype or Slack, to video conferencing tools like Microsoft Teams and Zoom. Do you need business insurance? It’s easy to assume that business insurance doesn’t apply to you as a freelancer, but that isn’t the case. While you won’t need employer’s liability insurance as a freelancer as you won’t have employees, you may choose to take out other types of business insurance to protect you and your reputation should the worst happen. For example, Professional Indemnity Insurance can protect you if you make a mistake or your client suffers (or claims to have suffered) financial loss because of your services. Your policy will then cover any legal or compensation costs should your client make a claim. Similarly, Public Liability Insurance is designed to protect you should a member of the public make a claim against you. Without it, you could face significant legal fees and compensation costs that could threaten your financial stability. When it comes to business insurance, it’s always better to be safe than sorry. Like all types of insurance, the hope is you’ll never need to actually use it, but it’s there to offer peace of mind should disaster strike and you need a helping hand. Our partner, Business Support Club, can match you with reputable and reliable business insurance providers , giving you the reassurance that your business and reputation are protected. 2. Identifying your branding and positioning Next, you’ll want to prioritise your branding and positioning as a freelancer. Branding is a crucial element of freelancing, as it helps you to establish a distinctive identity, especially in a competitive market. Having a well-established brand to your name can inform potential clients why they should choose you over your competitors. Your branding can also instil confidence in your potential clients, letting them know you’re serious about what you do and are a professional in your industry. To begin with, you’ll need to define your target market and brand values. What sets you apart from others? What values do you want your brand to represent? Perhaps you consider yourself a flexible freelancer, or you pride yourself on your creativity. Make sure your strengths and USPs are at the forefront of your branding. From there, you can consider the visual representation of your brand such as your business logo and website to reflect your brand identity. By prioritising the branding of your freelance business, you’re one step closer to attracting and retaining the right clients and securing the profits you deserve. 3. Setting rates and managing finances When it comes to setting your freelance rates, getting the balance right is key. You’ll want to make sure you’re being paid enough for your time and expertise, while remaining competitive in your industry. To gauge how much other freelancers charge for your services, research average rates for your specific skill set and services. Make sure you factor in your geographic location too, as how much you can charge may vary depending on where you live. Similarly, you should factor your level of experience into your rates - after all, your hard work and dedication should be rewarded. The more experience you gain, the more you can justify higher rates to reap the rewards of your hard work. Other considerations include your monthly expenses and taxes. Put together a list of your monthly expenses, as well as the costs you incur as a freelancer such as fees for software. You’ll want to make sure you can cover your monthly expenses and enjoy life too! It’s important to remember that as a freelancer, your taxes aren’t automatically deducted from your salary each month. Instead, you’re responsible for reporting your income and ensuring you pay the right amount of tax. If you’re registered as a sole trader, for example, you’ll need to submit an annual Self Assessment tax return on your earnings. It’s important to factor this amount in when deciding how much to charge potential clients. A clear and professional invoice makes sure your client has all the information they need to pay you efficiently and accurately. Our guide to freelance invoicing explains how to format your invoices and what to include, so you get paid as quickly as possible. 4. Finding and retaining clients Deciding to start a freelance business is one thing, but finding potential clients is a whole other ball game. Building strong client relationships is key to a thriving freelance business and maintaining a stable income. Here are some tips to find and retain clients for the long haul. Networking: Make the most of networking events and participate in communities and online forums in your industry. Networking allows you to build relationships with potential clients, as well as other freelancers you can learn from. Online platforms: There are numerous platforms out there to advertise your services, such as Upwork and Fiverr. Take the time to optimise your profile, to showcase your skills and expertise. Your portfolio and website: Make sure your website and portfolio is up to date and showcases your passion and skills. Also consider optimising your website for SEO by including keywords related to your industry, so potential clients can find you when searching online. Social media: Shout about your freelance business across your social media platforms and showcase your hard work to potential clients. Be sure to engage with relevant hashtags to increase your visibility. When it comes to retaining your clients, quality and consistency are vital. Make sure you’re consistently delivering high-quality work on time, to encourage repeat business and referrals. By consistently meeting deadlines and providing top customer service, you’ll build trust and reliability with your clients, ensuring a steady stream of work and long-term success as a freelancer. Tips for managing time and workflow As a freelancer, it can be all too easy to become absorbed in your work and struggle to maintain a healthy work-life balance. Setting yourself boundaries is key to helping you manage your time and increase your productivity. Below are some time management techniques you can use to help manage your time and prioritise your tasks as a freelancer. For more in-depth strategies on maximising productivity and minimising stress, be sure to check out our guide on how to track and manage freelance work . Time blocking: Try to allocate specific amounts of time for different tasks or projects throughout your day. Not only does this hold you accountable to get things done, it also prevents you from trying to juggle several tasks at once, increasing productivity. Set SMART goals: SMART goals are Specific, Measurable, Achievable, Relevant and Time-bound. Breaking larger goals into smaller, more manageable tasks can make them feel achievable and easier to accomplish. This method also helps you to track your progress. Limit distractions: Try to minimise distractions while working by ensuring you work in a dedicated workspace - particularly if you’re working from home. You can try various strategies to help with this, such as turning your phone on flight mode when you’re focusing, turning off notifications and using website blockers to avoid procrastination. Project management software: There are several tools out there to help you manage your workload, such as Asana and Trello. Project management software can help you visualise your workflow, create to-do lists, collaborate with clients and track your time. Start your freelance business today with SUAZ We hope our guide has answered any questions you had around how to start freelancing, and left you inspired to take the leap towards entrepreneurship. Starting your own business can feel daunting, and with so many hoops to jump through, it’s easy to feel overwhelmed. But it doesn’t need to be that way. Forming your business with SUAZ can eliminate any anxieties you may have, by having a support system to guide you every step of the way. Freelancing offers a lifestyle you won’t find anywhere else, allowing you to work in a way that serves you, with freedom and passion at your fingertips. So, what are you waiting for? Form your freelance business today and watch the magic happen. Recommended Readings

If you're looking to start an online business in 2025, we've compiled a detailed guide on the steps involved when launching an ecommerce store. Read more. How to Start an Online Business in 2025 12 min read Company Formations, Beginner's Guide Table of Contents Categories Why an online business? What kind of online business should you start? Consulting Freelancing Dropshipping Homemade goods Creating content Conduct Research Find the perfect product or service Register your company Legal considerations Build your website Increase your odds of success How SUAZ can help Beginner's Guide Business Trends Company Formations Start-Up Finance Virtual Office If you’re looking to start a business online, there’s really no better time to do so. According to Beauhurst’s New Startup Index, a record 900,000 new businesses were incorporated in 2023 - an impressive 12% increase from 2022. So, if you’re looking to step into those entrepreneurial shoes this year and break free from the standard 9-5, there’s no reason to wait. Whether you’re looking to create a side hustle, or pursue your passion full time, understanding how to start an online business is crucial. Starting a business is no walk in the park, with numerous hoops to jump through - but the rewards can be life-changing. In this comprehensive guide, we’ll cover exactly how to start a small online business, from market research to choosing the right business model, so all the boxes are ticked. By following these simple steps, you can take your business idea and transform it into a thriving enterprise. Let’s get started, shall we? Why an online business? There’s no denying that we’re now living in the digital age. So much of our lives are now online, including online banking , online shopping and social media. Choosing to start a business online can unlock customer engagement on a global scale, often at a fraction of the cost. Here are some of the key benefits of choosing to start an online business: Lower startup costs: Online businesses often require less initial investment. You can avoid the cost of renting or buying a physical space, as well as the cost of utilities and hiring in-store employees. Your operational costs are likely to be significantly lower as you won’t need to cover property maintenance either. Increased flexibility: Unlike running a store or other physical enterprise, you can manage your online business from anywhere in the world. This can offer you flexibility when it comes to both location and your working hours. Customer insights: With an online business, you can make the most of various analytics tools to track your customers’ behaviour and preferences. You can use this data to inform your business decisions and personalise your marketing efforts. Marketing opportunities: You can make the most of various digital marketing strategies to get your business name out there. From SEO to email campaigns, you can market your brand digitally, often at a lower cost than traditional, print-based advertising. Customer convenience: Not only does an online business offer you flexibility, it suits the flexibility and convenience of your customers too. Your buyers can shop from their homes or on the go, which can improve their overall customer experience. What kind of online business should you start? If you’re planning to start a business online, one of the first steps in your journey is deciding on your business model. There are several types of online business models to choose from, and one of them is likely to suit your work preferences and lifestyle the best. Before jumping headfirst into starting your company, it’s always a good idea to plan. Make sure you prioritise writing your business plan . Your business plan details your business’ goals and strategy and can keep you on track. If you’re thinking of applying for a business loan , the bank is likely to ask to see your business plan too, so they know you have a strategy in place to pay back the funds you owe. As technology has evolved, so too have the types of online businesses available which we’ll dive into below. Consulting Online consulting is a business model whereby you offer professional advice to clients through your digital platforms. These platforms may include social media, content marketing (such as blog posts or podcasts) or even one-to-one coaching via video calls. If you have specialist knowledge in a particular area, there’s no reason why you can’t share your expertise with others. Consulting is super flexible too - there are consultants in just about every area or niche imaginable from marketing and finance, to marriage and relationships. If you have the drive to help others and a particular passion or background in a certain area, coaching or consultancy may be for you. It should be a fairly straightforward online business to start too. All you need is your existing knowledge and skills, a stable internet connection and a platform to get your name out there. Freelancing Freelancing is a popular online business model, allowing you to offer your service to clients on a project or contract basis. According to 2024 data, 13.6% of the UK aged 16 and over are doing some form of freelance work. Starting a freelance business is a flexible and popular way to take your skills and passions and transform them into a successful enterprise. First, you’ll need to decide on your freelance niche - the area where your skills and strengths lie. What is it you’re passionate about or excel at? From there you can identify any gaps in the market that you could look to fill with your service, and tailor your offering to the needs of your potential clients. Make sure you shout about your services online, by optimising your website for SEO, and connecting with potential clients at events or through online platforms such as LinkedIn. By making the most of your platforms and digital tools, you can build an independent, thriving business in no time. Dropshipping Dropshipping is a flexible business model with very low startup costs. Rather than buying, storing and shipping products yourself, you get a third party to take care of it for you. You’ll create an online storefront for customers to browse products. When a customer makes a purchase, you forward the order and payment to a supplier who then ships the product to the customer. This eliminates the need to invest in a warehouse or keep stock on hand. This means you can devote more time to marketing your business and connecting with your customers. Homemade goods Homemade goods, often described as DIY businesses, are a creative business route for those looking to sell their creations. Homemade goods businesses take little money to get started and can be started as a side hustle, or your primary source of income. There are numerous benefits to starting a DIY business, from becoming your own boss to the freedom to work anywhere. When it comes to getting started, your to-do list should be relatively small. All you need are your startup supplies, a stable internet connection to set up your website and promote your products and some cash to hand to cover initial shipping costs. From jewellery making to woodwork, you can let your creativity run wild as you build your enterprise. Creating content In recent years, content creation has become a popular and competitive field. In fact, there are over 200 million content creators in the world , making it a thriving industry to be a part of. But there is more to content creation than meets the eye - it requires a solid strategy and a commitment to regular posting to get your content seen. There are numerous forms of content you may choose to create for profit, from YouTube videos to social media posts. It’s important to note that like many things in life, content creation requires patience and time. Try as you might, it’s unlikely that you’ll become a household name overnight. But by regularly posting and engaging with your audience, there’s no reason why you don’t have a chance of success waiting for you. Conduct research When you start an online business, it can be all too easy to get ahead of yourself with the excitement of it all and forget to plan ahead. A key element of planning your business is research - in fact, research is vital at every stage of your business journey. Research lays the foundations for your decision making, and can help you to mitigate risks and make the most of any opportunities that come your way. By identifying the needs of your customers and market demands, you can cater your product or service to appeal to your customers’ needs and stand out against your competitors. Research the market you plan to enter and who your competitors are. Identify their strengths and weaknesses so you can differentiate your service or product accordingly. From there, you can get to know your potential customers, determine their needs and preferences and market your product or service to appeal to them. Find the perfect product or service Deciding on the product or service for your business is a major decision that requires consideration of several factors, such as market demand, your background and your career goals. Here are some tips to consider when deciding on the right product or service for your business: Identify your expertise or passion: Bring it back to basics. Consider your interests, skills and values and try to choose a product or service that reflects them. After all, you’ll want to enjoy the work you do and truly care about the product or service you’re selling. Market research: Carry out market research to help you spot opportunities and demand for certain products or services. Is there a demand for a product that isn’t available, that you could introduce? Consider trends, competition and profitability. Your resources: Assess the resources you have available, including your finances, skills and time. Make sure you choose a product or service that fits with your resources, so you can put your plans into action. Do you have the budget to make your business idea happen? Can you rely on your network for support? USPs: Decide on your unique selling proposition (USP) which is what makes your product or service unique and better than your competitors. This will play a pivotal role in your branding and marketing too. Your business model: As mentioned above, once you’ve decided on your product or service, you’ll need to choose the most appropriate business model. From dropshipping to consulting, make sure your business model aligns with your goals and resources. Stake your claim by registering your company Once you’ve fleshed out your online business idea, you’ll need to officially form your company. While the idea of registering your company may sound complicated, once you get your head around the process, it should feel straightforward. You’ll need to form your new business with Companies House, which maintains the register of companies in the UK. You can do this yourself for a £50 incorporation fee, or trust a company formation agent to take care of the registration process for you. With SUAZ, your company formation is completely free. We’ll cover the £50 incorporation fee (no catch!) and you’ll have our advice and support to hand whenever you need it. We’d love nothing more than to help you on your road to success. Take a look at our company formation packages to get started. Consider the legalities There are more legal considerations to be aware of than company formation. Make sure you cover all legal bases when forming your business, and consider any insurance or certifications you’ll need to have. Taking out business insurance can give you the peace of mind that if disaster were to strike, you’ll have a helping hand there to pick up the pieces. If you’re planning to hire employees, you’ll need to take out employers’ liability insurance to protect your business should a member of staff become injured or fall unwell as a result of working for you. While not a legal requirement, you may also choose to take out public liability insurance for financial protection, should a third party claim to have suffered injury or property damage because of your company. Build your website You can think of your website as your digital headquarters, where all your interactions, transactions and operations take place. As an online business, investing time and money into your website is vital. Your business’ website is a valuable marketing tool to showcase not only your products or services, but your company’s mission and message. If you’re looking for a web hosting provider to get your website up and running, why not browse the BSC marketplace? Our partner site, BSC, can connect you with a variety of professional web hosting providers to get you online, at a price that fits your budget. Increase your odds of success The online business market is a highly competitive space to navigate. With an uncountable amount of online stores, content creators and service providers looking to stand out, you’ll need a solid strategy to give you the best chance of success. Here are some tips and tricks to help your business stand out from the crowd, in such a competitive market. Identify your USP to clearly define what sets your business apart from your competitors. Maybe you pride yourself on your excellent customer service, or a unique product that will take the market by storm. Make sure your website is optimised for SEO and user experience (UX). This means ensuring your site is mobile-friendly and has a user-first interface that’s easy to navigate. Prioritise high-quality content that addresses your audience’s needs. From blog posts to podcasts, make sure your content is engaging, promotes your brand and is optimised for SEO. Try to attend industry events, such as conferences or webinars, to build connections and keep up-to-date with industry trends. How SUAZ can help There’s no downplaying it - starting your own business can feel complicated. But it doesn’t need to be. With our company formation service, you’ll have the support you need to approach each stage of your journey with confidence. Form your company with SUAZ today. Recommended Readings