The essential things you absolutely definitely need to do to set up your business

There aren’t actually many things you really have to have in place before you’re ready to do business as a Sole Trader.  Here’s what we consider to be the bare essentials that you can’t do without:

A company name

Guidance on choosing your business name and the restrictions you need to know about
 

A business bank account

You should look at the many free banking options available on business bank accounts - see our guidance on choosing a business bank account

Register with HM Revenue & Customs

You need to register with HM Revenue & Customs as self-employed within 3 months.  To can register online with HMRC as self-employed and for self-assessment tax registration.

A way of invoicing your customers

See our article on information that needs to be displayed on an invoice

A way of keeping a record of sales and costs

You need to keep these for at least 7 full tax years.

Basic terms and conditions of business

A simple description of what you are supplying, the price and your payment terms will suffice, or you can use a more official terms and conditions document.

Business insurance

Business insurance is sometimes compulsory, very often optional.  More information on types of business insurance available


And that’s basically it!  Of course there are many other things that will help you and make your life easier to find customers, promote your business and manage your finances.  Click here for some ideas of other things you may need.