Starting Up Your Own Business Successfully

Starting up your own business requires some basic information to get it right. Essentially there are three legal standards for starting a business. You can register as a sole trader, team up with others as a partnership or incorporate a limited liability company.

The Limited Liability Company

A limited liability company is usually incorporated to run business as a PLC - public limited company or as a private limited company - Ltd.

The former is usually quoted in the stock exchange so that members of the public can buy its shares and so become co-owners. However, most people start up with sole trader type and then upgrade to limited liability - some have gone on to become publicly quoted companies - PLC.

A Soled Trader

A sole trader is the very basic level of business ownership and very different from both the Ltd and PLC types of limited liability companies. As a sole trader or partner you are held personally liable by law for any debts incurred by the company, and your personal assets is liable for offsetting them.

While a sole trader business may not continue at the death of its owner, limited companies carry on even after all the funding members have gone to the great beyond, resigned or been bankrupted.

Limited companies are required by law to pay corporation tax on their profits while their directors get taxed on their income just like the employees the company.

So it is wise to decide when starting up your own business which type of business registration suites your purposes and financial capacity. If you register a limited liability company your personal financial risk is equal to your investment in the company or any guarantees you may have made while raising funds for the business.

But if the company goes bankrupt due to your negligence as company director, you could be made liable for debts incurred by the company while at the same time being disqualified from become a director in any other company under the law.

The following are the steps you should follow in registering a limited liability company:

1. Decide nature of business
2. Decide name for the company
3. Appoint a lawyer to handle documentation and registration of your company.

Finally, write a good business plan, if you need to source funding for your business. See more information at How To Make A Business Plan on how to write a successful business plan when starting up your own business.