3 factors to protect yourself and your business when you’re self-employed

As a person who’s self-employed, there are plenty of benefits that you can gain from it. You’re able to work your own hours, manage and set your own workload and be flexible with when you wish to work. It’s a route that more and more individuals are looking to take up. You should be aware, however, that there is responsibility that comes with being self-employed which people tend to miss. In particular, the legal side of things.

Thankfully, here is a list of important considerations you should make before becoming self-employed including factors related to your business and the law.

Be clued up on legal implications

It is your responsibility as a self-employed individual to know what the legal implications are with your current activities. The interactions you’re making and what’s occurring in your business need to be researched and understood thoroughly to prevent corporate solicitors Manchester based threatening the success of you and your business.

To ensure customers are safe, there are constant reviews being made of business legislations which means you should keep up to date with these before they occur. Failure to do so could put your business at a big risk. Luckily, there are plenty of resources available online from experts in the field that help with your understanding your rights and responsibilities.

Tax registration

Being self-employed means you don’t have the luxury of your taxes being automatically dealt with through your employer. Instead, you’ll have to register yourself to prevent the risk of tax evasion which will come with plenty of implications including fines or even imprisonment.

Fortunately, registering for taxes has never been more easy as you’re able to deal with the process all online. You’ll be able to set your business up as a sole trader, limited company or a partnership with someone else. For early businesses, setting yourself up as a limited company always appears the wisest choice as personal and business money still remain apart and saves any complications for contentious probate solicitors Manchester based when it comes to long-term will writing or estate planning.

Set up business insurance

One factor that can be really detrimental to your business is when someone, whether an employee or a client, decides to take legal action against you. If you don’t have the funds available this could make matters even worse and dispute resolution solicitors Manchester based could take you for all you’ve got. This is why having a safety net through business insurance is essential. 

There are a number of business insurances available to you, so factor in the circumstances of your business to determine which insurance is right for you. You may consider the following:

– How many employees do you have?

– What assets do you have that require attention?

– What’s the type of business that you’re running

Conclusion

As a self-employed individual, legal factors that protect you should be at the top of your list. Not only will it safeguard yourself in the long-term but it can also prevent your business from being at risk of suffering.