Starting a business in Swadlincote – or anywhere else in the UK – isn’t completely free.
There are costs to register, get started and keep things running.
The amount you’ll have to pay depends on the type of business you want to set up and its structure.
Here’s a breakdown of the costs of registering a new business in the UK*.
How much does each business structure cost to register?
Each start-up business structure comes with different fees, paperwork requirements and ongoing obligations. Here’s a quick look at what each option will cost you:
Sole trader registration costs
It’s easy to register as a sole trader with HMRC.
The cost?
Nothing. £0. That’s right!
It doesn’t cost anything upfront. You must inform HMRC that you’re self-employed by completing a self-assessment tax return. You’ll do this annually to report your earnings.
There are deadlines to meet. You’ll face penalties if you miss the deadline for submitting your self-assessment. You’ll also need to pay your taxes on time to avoid additional fees.
Limited company registration costs
Registering a limited company through Companies House costs more than a sole trader:
- Online registration – the fee is £50. You’ll be up and running within 24 hours in most cases.
- Paper registration – the fee is £71, paid by cheque. This option takes longer to process (eight to ten days), so we advise online registration instead.
After registering, you must file an annual confirmation statement, which costs £34 online (or via third-party software) or £62 by paper.
Limited Liability Partnership (LLP) registration costs
Registering an LLP is more involved than registering as a sole trader or even a limited company. The registration fee is the same whether you have one partner or several, and they’re the same as the costs for a limited company. However, it’s usually best to use an agent or third-party software to register an LLP.
- Online registration – the fee is £50.
- Paper registration – the fee is £71.
- Same-day registration – the fee is £78, and your LLP will be set up within hours.
You’ll also need a partnership agreement, which may incur legal fees if you hire a solicitor to help you draft it. After registering your LLP, you’ll need to file an annual confirmation statement, which costs £34 online (or via third-party software) or £62 by paper.
Other start-up and ongoing costs
Many other costs come into play when registering your start-up business. Here are just a few:
- Trademark registration – protect your brand name or logo by registering a trademark. This costs £170 for one class, with an extra £50 for each additional class.
- Website costs – domain names cost anywhere from a few pounds to £100+ a year. Website hosting generally comes out at a few hundred pounds. Enlisting professional help starts at a few hundred pounds per month.
- Business bank account – businesses should have a separate bank account for their finances. Some banks offer free business accounts, but lots charge monthly fees. These range from £5 to £30 or more.
- Professional services – it’s worth working with an accountant or solicitor to help with tax submissions, legal documents and business advice. Fees vary depending on the service(s).
- Annual confirmation statements – the cost is £34 online or £62 for paper submissions.
- Corporation Tax – limited companies must pay Corporation Tax that (currently) starts at a rate of 19%. It uses a tapered system that could rise as high as 25%.
The best way to identify all your ongoing costs is a comprehensive business plan. If you haven’t got one, or are unsure where to start, check out our handy guide about writing a business plan.
Minimising your costs and understanding tax implications
You don’t need to overspend. Registering your business online is cheaper than using paper. There are no tricks here. It’s just the better option for most business owners.
You can save money by doing your own self-assessment as a sole trader. But if you’re unsure, Buckler Spencer can help you avoid costly mistakes.
Each business structure has different tax rules.
Sole traders pay income tax on profits. Limited companies pay Corporation Tax, with directors paying themselves via dividends or salary. LLPs have a slightly different tax setup, with profits typically shared among partners.
Tax rates change regularly, so staying on top of things is essential.
Buckler Spencer can help you understand your Swadlincote business’s tax implications and guide you through the setup. We’ll put our five decades of heritage to good use by ensuring you meet compliance and avoid overpayments, choosing the right business structure for your organisation. We make admin our job. All you need to do is focus on growth.
Not sure which structure to choose or need help with costs? We work with businesses in Swadlincote and the surrounding areas to ensure a strong start at the most efficient costs. Contact us today to register your new business the right way.
* Note that Companies House updated its prices in May 2024. Here’s the full list.