Explained: the rules for using a business and / or company name.

Getting your business name right is important - it gives people a first impression of your company. The rules differ for sole traders and limited companies.

Many people start their businesses from home. It saves on the cost of hiring an office (and the commute is a cinch!). There are some things to watch out for, however.

One of the key questions is which way you’ll pay less tax and national insurance - by being self-employed or as a limited company.

There are several ways you can set up the actual company. Here are the pros and cons of each - with links to more detailed information.

If you want to trade as a sole trader (or a member of a partnership as an individual), you need to register as self-employed with Her Majesty’s Revenue & Customs (HMRC).

Handy checklist when starting up in business as a sole trader.

Handy checklist when starting up in business as a limited company.

If you set up your business as a limited company, it means it’s a separate legal entity - which has some pros and cons.

Being a sole trader is the easiest way to start a business - there are fewer reporting requirements than if you set up as a limited company, for instance (although you do have to register as self employed at the HMRC). And accounting is much easier (and hence bills for accountants are lower).