Services > Business and VAT registration
Business registration is the process of legally establishing your business with the relevant government authorities. This process varies depending on the country and the type of business structure you choose (e.g., sole proprietorship, partnership, corporation).
VAT (Value Added Tax) registration is the process of registering your business with the tax authorities to collect and remit VAT on the goods and services you sell
Steps to Register a Business:
-
Choose a Business Structure:
- Sole Proprietorship: Simple and easy to set up, but the owner is personally liable for business debts.
- Partnership: Involves two or more people sharing ownership and responsibilities.
- Corporation: A separate legal entity that provides limited liability to its owners.
- Limited Liability Company (LLC): Combines the benefits of a corporation and a partnership.
-
Register Your Business Name:
- Choose a unique name for your business and check its availability.
- Register the name with the appropriate government agency.
-
Obtain Necessary Licenses and Permits:
- Depending on your business type and location, you may need specific licenses and permits to operate legally.
-
RegisterRegister for Taxes:
- Obtain an Employer Identification Number (EIN) or equivalent tax ID.
- Register for any state or local taxes required for your business.
-
Open a Business Bank Account:
- Separate your personal and business finances by opening a dedicated business bank account.
When to Register for VAT:
- Mandatory Registration:If your business’s VAT taxable turnover exceeds a certain threshold (e.g., £85,000 in the UK3)
- Voluntary Registration:You can choose to register even if your turnover is below the threshold, which can be beneficial for reclaiming VAT on business expenses
Steps to Register for VAT:
-
Determine Eligibility:
- Check if your business meets the criteria for mandatory or voluntary registration.
-
Gather Required Information:
- Business details (name, address, type of business).
- Financial information (turnover, bank account details).
-
Receive VAT Number:
- Once registered, you will receive a VAT number, which you must include on all invoices and receipts.
-
Comply with VAT Regulations:
- Charge VAT on your sales and issue VAT invoices.
- Submit regular VAT returns and pay any VAT due to the tax authorities.
Benefits of VAT Registration:
- Reclaim VAT:Registered businesses can reclaim VAT on purchases and expenses.
- Credibility:Being VAT registered can enhance your business’s credibility with customers and suppliers.
- Compliance:Ensures you comply with tax regulations and avoid penalties.
