The first thing you will need to do when starting a new business is decide upon a name and company status.
Naming your business
The first thing a potential customer will see is your business name. This initial interaction can be the difference in making a new customer or not. It is important to get the name right, so try to be creative and think about your target audience.
Sole Trader or Limited Company?
This is the easiest way to operate a business if you are a one-person business, all the decisions are made by you and all of the profits are kept by you.
However, this also means that all the financial responsibility lies with you as well. Any debts run up by your business can mean that your personal assets (house, car etc.) are at risk.
A limited company offers protection of your assets in the event you get into financial trouble. Your personal liability is limited to the cost of the shares and your personal finance is kept totally separate from the business finance.
As a limited company it will also be easier to access bank lending and you can sell shares to raise finance.
Limited companies are often deemed more prestigious by suppliers and customers.