How do I set myself up as my own consulting company?

[koalabear]

I have the skills to consult, but have no idea how to set up my own company, how to get liablity insurance, tax, etc.

Are there any pitfalls I need to avoid?

Can anyone give me some pointers?

TIA

Unless you want a whole heap of official paperwork I wouldn't set up a Ltd co. If you do the kind of consulting where you need Ltd Co protection (ie IT) use an umbrella company. I am sure most consultants operate as self employed / schedule D etc.

Simply get some business cards done, place an ad in the paper or online or via leaflet drop , prepare your consulting rooms or how you are intending to trade and off you go.

After a couple of months of trading get yourself a bookkeeping service unless you know how to keep books.

Good Luck

Simple (but understandably scary for the first time)

You need to register with HM Revenue & Customs - particularly to register that you're a small business. You will need to pay class 2 NI contributions. Also decide whether you want to be VAT registered. The pros are that if you're buying a lot, you can claim the VAT back. But if you're working one on one with clients, adding VAT onto their bill can make your prices seem more expensive (if they are individuals rather than VAT registered companies themselves).

I am a consultant (PR & Marketing) and am set up as a sole trader, am VAT registered, have an accountant who does my books every quarter plus my tax returns. I have a website and some business cards. I have sourced clients through people I know and cold calling.

I haven't taken out liability insurance and probably should but it's pretty expensive.

I set up as a building engineering consultant in a Limited Liability Parnership with my husband. It's similar to a limited company but much easier and cheaper to set up and administer as far as the tax man is concerned. Much more black and white and when it comes to tax you don't want a nasty surprise associated with a shade of grey. Phone some local accountancy firms and find someone who'll explain it all to you. Our accountant was happy to go through all our options for free even before we agreed to let him do our accounts.

I set up an environmental consultancy with my dad and we chose to become a Ltd co purely for status reasons, we felt it would be beneficial not to be seen as a "one man band" obv depends on your market though whether this is a consideration. We also chose to be VAT registered for the same reason, lots of schemes, cash accounting, flat rate etc to consider as well. We have professional indemnity insurance and public and employers liability. You've prob already come across it but businesslink.gov.uk is invaluable.