Tired of working for someone else? Have you ever had any thoughts of starting your own business either on a part-time or full-time basis? You are not alone. A lot in this world have started set up a small business on their own. Among the beauty in having your own business are you write your own pay checks, working flexi-hours, making your own decisions and a possibility of working from your home in your home business.
In most part of the world, starting your own business is a very simple and straight forward process. Before you get excited about it, you have to understand the legal aspects of your business such as legal requirements and taxation. You also have to determine whether are you going to start a Limited (Ltd.), a Private Limited (Pte. Ltd.), a Partnership or Sole-Proprietor/Sole-Trader kind of company. After that, think of your company name and register it with your local Registrar of Commerce (ROC).
One common mistake majority of people who what to start off their business are that they don’t think about VAT (Value Added Tax) until the business turnover is very high. You are obligated to register to pay VAT. Please check with your local Inland Revenue on the amount of business turnover to be registered to pay VAT. Different states and countries have different requirement. For example, in the United Kingdom, once your company turnover is more than Â£70,000, you must register to pay VAT. Any purchases made through the company are eligible to claim back any VAT from any company purchases.
Many people know about the importance of insurance but often negated it especially when it comes to business. In United Kingdom, every company set up there is required by law to take out compulsory insurance. In the event of a claim, this protects the both the employer and employees should a claim against the company arise.
Another very important aspect when starting a new businessis finance. With proper budgeting and planning, you will know exactly how much money you require for you to start your new business. Under fund it, you’ll fail. Over funding might end up burdening your profits when you make repayments. Having a good business plan is always a good idea and keeps you on track. You will know what you need to spend on and what expenses you can cut to maximize your profits.