I want to start a business – what do I need to do?
8 tasks in suggested order
1. Choose the business structure that matches how you will operate
The main structures include sole trader, business partnership and limited company. Registration, tax, liability and record-keeping duties differ by structure.
Before registering or starting to trade under a structure.
GOV.UK business setup guidance.
Who will own and run the business, expected activities and whether you want to operate personally, in partnership or through a company.
Choose the structure first because the later registration and tax steps depend on it.
Official source: GOV.UK
2. Complete the registration required for your chosen business structure
Registration is different for a sole trader, partnership and limited company. Follow the official route for the structure you chose, including tax registration where required.
When starting the business and before any structure-specific registration deadline.
GOV.UK, HMRC and Companies House where the chosen structure requires it.
Business name, owners/directors/partners, address and the details required by the relevant registration route.
Do not use a company-registration step for a sole trader or partnership unless you are actually forming a company.
Official source: GOV.UK
3. Set up the tax and accounting records required for your business structure
Keep the records required for the taxes and reporting rules that apply to your structure. Sole-trader, partnership and company record-keeping duties are not identical.
From the start of trading and for as long as the relevant record-retention rules require.
HMRC/GOV.UK and, for companies, Companies House requirements.
Income and expense records, invoices, bank information and structure-specific accounting records.
The correct records and retention period depend on your structure and taxes. Use the official rules for the route you selected.
Official source: GOV.UK
4. Check whether you must register for VAT or want to register voluntarily
If applicable: If your taxable turnover may reach the compulsory threshold, or if you are considering voluntary registration.
VAT registration is compulsory if taxable turnover goes over £90,000 in a rolling 12-month period, or if you expect it to go over £90,000 in the next 30 days. Voluntary registration below the threshold is possible.
If you exceed the rolling 12-month threshold, register within 30 days of the end of the month in which you exceeded it. If you expect to exceed the threshold in the next 30 days, register within that 30-day period.
HMRC VAT registration service.
Taxable turnover for the previous 12 months, expected taxable turnover for the next 30 days and business/tax details.
The threshold is based on taxable turnover, not profit. Special rules can also apply to overseas businesses and certain transactions.
Official source: GOV.UK
5. Check licences, permits and premises rules for your specific activity
If applicable: If your activity, premises or sector is regulated or requires permission.
Some business activities require a licence, permit or other permission. The requirement depends on the activity and sometimes on the premises or local authority.
Before carrying out any activity that needs a licence or permission.
GOV.UK licence finder and the responsible authority shown for the activity.
Business activity, location/premises and details requested for the relevant licence or permission.
There is no single licence that applies to every business. Check the actual activity and location.
Official source: GOV.UK
6. Check which business insurance is legally required and which cover is optional
If applicable: If your activities, staff, vehicles, profession or contracts create an insurance requirement or risk you want to cover.
Insurance needs depend on the business. Some cover can be legally required in particular circumstances, while other policies are optional risk protection.
Before the activity, vehicle use, employment or professional work that makes specific cover necessary.
Check the official requirements, then arrange any required policy with an insurer or broker.
Business activities, staff, vehicles, premises, professional risks and any sector-specific requirements.
Do not assume every type of business insurance is compulsory. Check which cover is legally required for your circumstances.
Official source: GOV.UK
7. Check your UK data-protection duties and whether you must pay the ICO data protection fee
If applicable: If the business processes personal information.
Organisations and sole traders that use personal information must comply with data-protection rules. Controllers that are not exempt may also have to register and pay the ICO data protection fee.
Before or when you start processing personal information for the business, and before any ICO fee payment becomes due.
Information Commissioner’s Office (ICO).
How and why you use personal information, whether you are a controller, organisation details, staff numbers and turnover for the fee assessment.
Not every organisation has to pay the fee. Use the ICO self-assessment; an exemption from the fee does not remove other data-protection obligations.
Official source: ICO
8. Complete employer, PAYE and workplace-pension duties before hiring staff
If applicable: If you will employ staff.
Before employing someone, check their right to work, meet workplace and pay requirements, register as an employer with HMRC when required and assess workplace-pension duties.
Before the employee starts and at the points specified by the PAYE and workplace-pension rules.
GOV.UK/HMRC, The Pensions Regulator where applicable, and your workplace.
Worker details, payroll information, employment terms, right-to-work evidence and pension-assessment information.
Employment status matters: employee, worker and self-employed arrangements can create different duties.
Official source: GOV.UK
