If you have thought about how to start a company or partnering up with another entrepreneur and build a company. You are in the same boat like I used to be first, before I started my first start-up. Creating a business and opening success towards your legacy is process you have to do with all your intentions. It’s something that you are going to be very proud of when you create a job opportunity for at least one other individual out there.
To Start a company, it requires hard work, extensive planning and networking with right people from the beginning. However things does not go always the way we plan and there are some key steps you need to understand and implement to a successful business.
In this article I will talk about first steps you need to take if you are thinking of “How to Start a Company” and looking for w=the easiest process to do so. The first easiest way is becoming a solopreneur or an entrepreneurial organisation. I will show you the standards and how you can easily register a company and get started.
In the United Kingdom, the easiest form of business you can start is the sole proprietorship. Known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by you. You can register you service at the companies house website and get started immediately. No taxing issues, hard paper work and other things to worry about. If we go in to more detail, this is the modest form of business to work as freelancer and individual who provides a valuable service to the world at large. This does not fall in the form as a legal entity as it refers to individuals that own business and are personally responsible for its outcome.
I would advise you to check the companies house website and read more details on the subject if you need. There is another link I would highly recommend you to check at the Entreprenuers.com website. It gives you all the basic information of how to get going as sole proprietorship.
Advantages of Individual proprietorships
- Owners can set up individual proprietorships quickly, easily and without having to spend too much.
- Very little formalities
- Personal and business assets can be mixed freely without a concern for a partner’s consent.
- No unemployment tax on owners (might have to pay for their employees).
Disadvantages of individual proprietorships
- Owners are liable to risks like debts and losses.
- Owners will not be able to raise funds by selling interest in the business.
- Does not have the strength to survive incapacity of the owner.
The next most reputed form of company is the Limited Liability Company (Ltd.). We have formed a company of this structure at Futurist Business in the United Kingdom. The best thing of this type of companies is they are liability protected and reduces the downsides of going bankrupt of their personal finances.
Advantages of Ltd. company
- Does not require annual meetings and has to fulfill very few formalities
- Owners are protected from company debts, individual liability and other obligations
- LLC boasts partnership styles and get through taxation making it favorable to many small business setups.
Disadvantages of Ltd. company
- No reliable body for legal precedent to guide managers and owners. But these days Ltd. is becoming more and more reliable as well.
- Not a proper vehicle for business seekers to go public or raise funds in the capital markets.
- More expensive than partnerships
- Periodic filings or annual fees are usually incurred with the state
- Some states do not allow LLC formation for specific professional vocations
The next form of business is the Partnership organisations, which are sometimes bit hectic and confusing when you have several numbers of people to get approval from. Can be formed by two or more people joining together to make profit from an idea they have. The only main consideration is that one has to bear in mind that partnership is a form of business that is more likely to result in lawsuits and disputes because of its easy formation and informality.
A partnership normally offers relatively simple operation, organization and flexibility that multiple owners can afford to enjoy. However if you are a start-up and trying to get on your grind, the above two company structures would be idea for you.
The next and big one is the Corporation. For now I will let you research on it or else stop from here and go start one of the above type’s of companies I mentioned.
Anyway whatever the form of company you decided to go ahead with, keep in mind that a business is a GAME. So there will always be a win or lose. To make it a success you need a lot of hard work and a passionate commitment.
The easiest process to Build Business. Watch the below Video by Robert Kiyosaki as he explains why you should start a business.
So go out there network with great people think about if there is anything you can offer the world if not go back sit down and build the skills and go out and Reinventing the way you Think.