The recession has created an entrepreneurial boom with more than 1,000 businesses being created daily and we are seeing a similar trend in Sunningdale and across Surrey and Berkshire. According to the Federation of Small Businesses, half of Britain’s 5m businesses are run from home.

So you have the knowledge, the idea and the spare room but are you prepared for the paperwork associated with a business start up? You may find success comes quickly and that choosing a company structure, registering for tax, arranging insurance, bank accounts and complying with regulations appears daunting and confusing.

The first important decision is how should your company be structured. Should you be a sole trader or a limited company? Creating a limited liability company can bring legal and financial advantages, however you may find that running your business as a self-employed sole trader is more suited to your circumstances.

If you decide to become Incorporated (Limited) you’ll need to choose a name and register the business at Companies House. You can choose an accountant or formation agent to help with this process and use your accountant’s address as your registered offices. The taxman will then send you a form to register for Corporation tax which must be paid no later than nine months and one day after the company’s year-end. If you expect to earn over £70,000 a year you will also need to register for VAT and complete an annual return online.

It is good practice if you are a sole trader to open a bank account and for a limited company this is essential. A regular current account should suffice although banks will guide you towards a commercial account with associated advisory benefits in return for a fee. There are also various insurances a business needs to consider depending on whether you allow visitors to your business or if you are an accountancy, legal or IT consultancy you should consider professional indemnity insurance. If you employ staff you will need to seek advice on HR employment and legal responsibilities and decide whether you wish to handle payroll or outsource to your accountant who can save you costs in the long-run.

My advice to anyone thinking of starting their own business is seek the best advice from your business adviser/accountant before you start. It could save you money and avoid costly mistakes.