When setting up a new business there are various things to consider.
You can set up a business in three different ways:
As a Sole Trader, you are personally responsible for your business debts. You need to keep records of your business sales and expenses. Do a self-assessment tax return every year and pay income tax on your business.
By setting up a Limited company the finances are kept separate from your personal finances. You will need to register the company with Companies House. As a director, you have the responsibility to keep company records, file your company tax return and pay corporation tax.
A partnership is a simple way that two or more people can set up a business together. You share the responsibility for your business debts and you have accounting responsibilities.