Legal issues when setting up a small business

The owner of a business has to follow a process to set the business up legally:

1) Get permission to trade in an area from thelocal authority. They must also get any relevantlicences needed e.g. to sell alcohol and tobacco,or provide entertainment.

2) You must register with HM Revenue & Customs (HMRC) as self-employed to pay VAT.

3) You must submit an annual self assessment form to HMRC and keep accurate and up-to-date records of all sales.

4) You will also pay income tax on all profits and pay national insurance contributions.

A Unique Name!

• You cannot copy another business name e.g. you cannot set up a fast food outlet and call it Mc Donalds!

• The name of a business is one of its most vital assets. It's how you answer the phone. It's how people remember you and your products or services. It's what they see in your advertising, your leaflets, your business cards and stationery. It's how your business gets recommended to others.

Some novel business namesBusiness Name Type of BusinessFloral n Hardy Florist

Jack the Stripper Door & Furniture Stripping

Inkspirations Tattooing & Body Piercing

Junk & Disorderly House Clearance

Nice Buns Big Baps Sandwiches & Hot Food

Get Stuffed Jacket potato shop

Austin Flowers Florist

Goodfillas Sandwich shop

If you register with this Governmentorganisation they will protect your trading nameagainst copying by another business, companyor brand.

Questions

1. Why do you think the Government requires certain businesses to have a license to trade?

2. What is income tax?3. How does the Government use revenue from

income tax?4. Which is the best of the “novel” business

names? Why?5. How did you decide on your business name for

the homework you did? Why is it a good name?