If you are just starting up in business, it is unlikely you will be trading through a limited company so you probably won’t have to think about corporation tax, but you should check whether it will apply to your business.

For instance, a business run as a co-operative (not a partnership) is taxed as a company. If this applies to you, you should ask an accountant for advice.

Corporation tax is charged on the profits made by companies.

Unless you run your business as a company, you will not be liable to pay it.
To run your business as a company, you need to issue shares and appoint directors. There are a number of legal requirements.

For example, if your business is a company you must keep records for at least six years from the end of the tax year they relate to.

You should always seek legal advice if you’re thinking about setting up and running a company.

If you would like more advice on registering a business please click here