The short answer: you can start trading straight away, but there are things to sort out early: choose your structure, register with HMRC, keep records from day one and separate business money from personal money. Getting these right at the start saves time and stress later.
1. Choose your structure
Most new businesses start as a sole trader or a limited company. They differ in liability, admin and how you take money out. Read our guide: sole trader or limited company?
2. Register with HMRC
If you are a sole trader, you must register for Self Assessment if you earn more than £1,000 in a tax year (6 April to 5 April). New sole traders need to tell HMRC by 5 October following the end of the tax year in which they started. A limited company is registered with Companies House and HMRC. We can set this up for you: see company formation.
3. Choose your business name
A sole trader can use their own name or a trading name. A limited company has a registered name. Check that the name you want is not already in use.
4. Keep records from day one
You need records of your income and costs to work out your profit and complete your tax return. Set up simple accounting software early, and keep receipts. Our checklist shows what to keep.
5. Separate your business money
A limited company must keep its finances clearly separate from those of its owners and directors, usually with a separate business bank account. It is also good practice for sole traders, because it makes your records much easier.
6. Plan for VAT
You must register for VAT when your taxable turnover goes over £90,000, and you can register earlier if it helps you. See our VAT guide.
7. Think about staff, insurance and tax planning
If you will hire people, read our guide to hiring your first employee. Think about which insurance your business needs, and talk to an accountant about how to set aside money for tax.
How we can help
We help new businesses choose a structure, register with the right authorities and set up their books. Book a free 20-minute call and tell us your plans.
Sources: gov.uk, set up as a sole trader and running a limited company, checked 25 September 2026.
Common questions
Do I need an accountant to start a business?
No, but early advice on structure, registrations and record keeping can save you time and money later.
Can I start trading before I register?
Sole traders can start trading straight away. You must register for Self Assessment once you earn more than the £1,000 threshold in a tax year, so do not leave it late.
When should I talk to an accountant?
Ideally before you start, so your structure and records are right from the beginning. It is never too late to ask for help.
General information only, not personal advice. Tax rules, rates and thresholds change, so check gov.uk or speak to us about your own situation.