What you need to do to set up a new business depends on your type of business, where you work and whether you are employing people. You can register as a sole trader, limited company or partnership.
Sole traders – It’s simpler to set up as a sole trader, but you’re personally responsible for your business’s debts. You also have some accounting responsibilities.
Limited companies – If you form a limited company, its finances are separate from your personal finances, but there are more reporting and management responsibilities.
Partnerships – A partnership is the simplest way for 2 or more people to run a business together. You share responsibility for your business’s debts. You also have accounting responsibilities.