Bookkeeping and Accounting All-in-One For Dummies, UK Edition

Chapter 1

Discovering Different Business Types

In This Chapter

Sorting out business legal structures

Reporting on self-employment and partnership tax

Filing taxes for limited companies

Before you begin your business, cast your mind forward and determine what you think your business is going to look like over the next few years. For example, do you see yourself heading up a multinational corporation with lots of people working for you? Or, do you perhaps see yourself on your own, working the hours that suit you, picking the jobs that you want to do? Make sure that you take a few minutes to consider this, because your answers to these questions have an impact on which structure is most suitable for your business.

Whichever structure that you decide to start with determines how much administration needs to be done and who you need to inform that you’ve started a business. For example, paying taxes and reporting income for your business are very important jobs, and the way in which you complete these tasks depends on your business’s legal structure. From sole traders (self-employment) to limited companies and everything in between, this chapter briefly reviews business types and explains ...