Self-Employment and Business Registration
You don’t need to register as a business if you are self-employed or a sole trader. When you start working for yourself, you are classed as a sole trader. As long as you have a National Insurance (NI) number, you’re good to go.
The HMRC recommends that you register your business as soon as possible. However, there is a cut off for registering your business. It is 5 October after the tax year end that you began your self-employment.
Business Structure and Registration
If your business is an LLC, partnership, or nonprofit corporation, you do need to file for licenses and permits.
The simplest business structure is a sole proprietorship. They don’t have much structure.
The decision on business structure generally comes down to four choices: sole proprietorship, partnership, LLC, or corporation.
Legal Considerations
However, legally you need to register your business by 5 October after the tax year you became self-employed.
You may not need to register your business if you are self-employed. But you may miss out on legal and tax benefits if you don’t.
Additional Information
Before opening your doors, you need to forecast expansion like new equipment or employees.
There are ways to help small businesses win federal contracts. The SBA determines if your business qualifies as small.
If your income is less than £1,000, you don’t need to declare it.