Working at home mums - Funky Angel

This is what most people mean when they say freelance or self employed, and it is the easiest way of starting a business.

You need to register as self employed with your tax office, and submit an annual tax return as always, but otherwise it does not involve paying any registration fees, and the keeping of records and accounts is straightforward. In addition, you get to keep all the profits.

However, the downside is that you are personally liable for any debts that your business runs up, which can make this a risky option for businesses that need a lot of investment.

What this means in real terms is that should you, as the sole trader, not be able to make suitable arrangements to settle any debts your personal possessions, including your home, will be fair game to the creditors.

Homes that are jointly owed can be forced to sale, unless 50% of the market value can be found for creditors. So, husband & wife partnerships can have a nasty end if they are business partners and sole traders, especially if their relationship breaks down.

© Claire Burdett. No content to be reproduced without written approval of the author.

Claire Burdett is the Founder and Director of Funky Angel. She is a Writer, Journalist, and Editor, Integrated Marketing Expert, and Home Business Mentor.

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Work - Sole Trader

Starting as a Sole Trader

This is what most people mean when they say freelance or self employed, and it is the easiest way of starting a business.