There are many different areas that need attention when starting a new business and one which you absolutely need to get right is being legally compliant. It is vital that everything is legal and above board from the very start as you do not want to become entangled in an expensive legal issue before you have even had a chance to succeed. This can be a complex area, so read on for advice on how you can ensure that your new startup is legally compliant.
Choosing the Right Structure
One of the first big decisions that you have to make is what structure to choose for your business – this will have a direct impact on regulations and tax requirements, so you need to familiarise yourself with the different types and choose the best structure for your situation. The main types are:
- Sole trader (proprietorship)
- Partnership
- Limited liability partnership
- Limited company
Tax Regulations
Following this, you must declare your tax liabilities at the time of incorporation and make sure that you know what taxes you need to pay and pay these on time to HMRC. The main types of tax that a UK small business will have to pay include:
- Corporation tax
- Value added tax (VAT)
- National insurance
- Income tax
Legal Documentation
There will also be various legal documents that must be drawn up to make sure that your company is legally compliant. This will include policies for areas such as data protection, training and competence, IT security, complaints handling etc.
Privacy and GDPR Compliance
In today’s day and age, privacy and GDPR compliance is a key area that many businesses struggle with since the passing of GDPR in 2018. Processing personal data is a key part of the operation for businesses in many industries, but you must make sure that you are protecting this data and obtaining data legally.
Assessments
It is also a smart idea to carry out assessments prior to launching to ensure that everything is above board and that you will not encounter legal issues. You can also use legal service delivery from an experienced law firm so that they can understand your needs and make sure that you are 100% legally compliant prior to launching.
Starting a new business is an exciting process and there are many areas to address, but one area which needs to be a priority is legal compliance as you will not want to find yourself in a legal dispute at the start of your journey which could be challenging to overcome.
