Registering my company??

[WantToBeMyOwnBoss]

New name for anonymity!

Hello, advice needed on setting up my own business…

I am opening a beauty business. Initially mobile but will be converting a space in my home as I earn money, to eventually use as a home salon.

Do I need to register as a limited company?
It will just be me offering treatments but eventually my daughter will too but that’s a couple of years down the line.
Or should I register as a sole trader for now and then change it to a limited company later?? Can you do that?
or do I need to do something else completely?!

I have a main job in a different industry which I will be working around.
I know I will need to complete tax assessments and I will be getting insurance. I have been undertaking accredited courses around my job and am really excited to get going asap. I have bought the equipment I need already and want to launch in the next couple of days, so your help would be really appreciated!

Thank you!

You need to take advice from an accountant, who will look at your financial situation as a whole and tell you which would be most tax-effective for your circumstances.

It's no good asking on here.

Have a chat with your accountant. The taxes you pay on each are more and more similar these days, but being a sole trader offers more flexibility in terms of how you can use losses if you have any. The administrative burden and costs of compliance of the limited company is much higher and you shouldn’t open one unless you know what you’re doing or have appropriate advice. It can offer protection if there’s a claim against you, but you need insurance anyway. You can have employees as a sole trader.
You can certainly start as a sole trader and transition later. It should go with out saying and you probably already know, but you need a business account (even if a sole trader) and to keep receipts.
Please take personalised advice especially if you are starting a limited company or making claims for use of home beyond charging some of your electric (anything really basic, if you’re putting up an outbuilding or something you really should talk to someone as there is potential to cause issues if not done correctly).
Good luck with the new venture.

You don't need a business bank account as a sole trader although it is best practice to help keep things separate. Limited is more complex and carries greater responsibility - talk to a Chartered accountant and they will set you straight on which is best for your industry / business. You'll need a business bank account for a limited company as you are responsible as director for financial affairs.