What is the Common Mistakes Made When Starting a Small Business?

Starting a business in the UK can be a rewarding journey, but it requires careful planning and preparation. These are the usual steps to follow on how to start a business in the UK:

1. Choosing the business structure: Most common business structures in the UK are sole trader, limited company, and partnership. Decision making such as; which structure is right for your business, taking into account factors such as liability, tax obligations, and ownership is required.
2. Choosing the business name: The business name should be unique, memorable, and easy to spell. After choosing the names, the names can be checked by searching the Companies House register.
3. Registering the business: Registering the business with Companies House and HM Revenue & Customs (HMRC) is needed within three months of starting to trade. The process of registering a limited company is more involved than registering as a sole trader, but there are many resources available.
4. Get a business bank account: A separate bank account is required for your business to keep your personal and business finances separate.
5. Sorting out tax obligations: Registering for VAT is needed if your turnover exceeds the VAT threshold, and filing annual tax returns is needed with HMRC.
6. Get business insurance: Business insurance should be considered to protect yourself and the business from unexpected events.
7. Start promoting the business: Once everything is in place, start promoting the business to attract customers.

These are the general steps to follow when starting a business in the UK, but the specifics can vary depending on the industry and the nature of your business. It’s always a good idea to seek professional advice from an accountant or business advisor to ensure all legal and regulatory requirements are met.

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Produced by ChatGPT, overseen by a human at Counto