Hi darlings I hope you're alright,
So I've been having a lot of questions, from my students especially in regards to business so I thought I would record a few little helpful videos to help you along the way (and so you don't have to wait ages for my reply lol). This video is all about setting up and registering your business.
When starting into the beauty industry and offering treatments, deciding between setting up your business as a sole trader or a limited (Ltd) company can significantly impact how you run it and the growth of your business. And yes when you're setting your business up you do need to kind of have in mind where you want your business to go. Like whats your overall end goal in you know three, five years, or 10 years time even.
As a sole trader, you're essentially the one-person show – running your business on your own terms. This route offers simplicity in terms of administration and decision-making, making it a popular choice for individual beauty therapists, nail tech, lash tech etc. You maintain full control over your business, but also bear personal liability for any debts or legal matters. So if anything happens if you injure someone whilst doing a treatment or if someone damages themselves that trips over your kit bag or something like that your personally liable for this if you're a sole trader.
On the other hand, opting for a limited company provides a distinct separation between your personal finances and the business. This structure can offer more credibility and is a crucial factor in the beauty industry. While the administrative responsibilities are A bit more should I say a lot more, the limited liability means your personal assets are protected in case of business-related issues. For example if you own a house or own a car and you injure someone and they Sue you, they can Sue the business they can't Sue you directly. This setup Is also good if you're looking to expand or hire people because you can only set up payroll on a limited company not as a sole trader and I think personally it's better from the business perspective from building a brand that's just my perspective and opinion.
Have a serious think about what it is you want to be doing and it's not only now, think about the future so say for example like myself I started out doing nails so I was a sole trader did brows, waxing etc and then got into more advanced treatments and it wasn't until I got into advanced treatments that I changed my company over. You can also change over but it's not the click of a button to shut a sole trader company down and then opening up a limited company. One thing to note is, on paper it's like you've started your business again when you again, but you know you haven't.
Another piece of advice would be getting an accountant and they’ll more than lightly do this for you. Mine sorted my stuff for me, she's very good although, I did set up the Academy's on my own it was a bit faffy, I needed to ask her questions anyway, so if you're accountant will do it for you let them do it let the Professionals do the jobs that's what I always say.
so way up what's best for you in your business and at least you've got a little bit more information on which would suit you and your business a little more. My topmost advice would be to just make sure all your choices align with your vision and goals!
I hope that helps, and as always any questions put them in the comments or send me a DM.