When first setting up a business there are many issues to consider.  Starting and managing a business takes motivation, desire, and talent. It also takes research and planning. Setting up a business involves a number of important steps if you want to get things right first time.

One of the first decisions you need to make is whether to form a company or to trade as an individual (generally described as a sole trader).

Being a sole trader is the simplest way to run a business – it does not involve paying any registration fees and you get to keep all the profits. However, you are taxed at your personal rate on all profits, leaving less cash to reinvest into the growth of your business.  You are also personally liable for any debts that your business runs up, which ca make this a risky option. 

A company has a separate legal personality from its owners.  A company limited by shares is owned by its shareholders and managed by its directors. In a small company it is usual for the directors and shareholders to be the same people. The liability of the shareholders to the company is limited to the capital they have invested.  This limited liability is one of the principal advantages of incorporation.

Companies can only be incorporated by Corporate Service Providers (CSPs) licensed by the Guernsey Financial Services Commission. Go-Corporate is a CSP that will not only incorporate your company but also provide the ongoing support you need to keep your company’s books and records up to date.