Choose the right business model when you start a Virtual Assistant business.
One of the main areas to look at when you start a Virtual Assistant business is the way you are going to set up, operate name your business. Different countries have different rules but getting the business structure for your Virtual Assistant business right from the start is important. When starting a Virtual Assistant business you need to consider things such as:
This is one of the simplest ways of running your business but remember you are personally responsible for any debt’s your business may incur. You are also responsible for dealing with the accounting side of things including submission of tax returns. Whilst there is no legal requirement to use the services of an accountant it may be money well spent.
The finances of a limited company are totally separate from your own personal financial affairs, but you are required to submit returns so there are more responsibilities regarding the accounting side of things. Again, you can try and do this yourself, but it would be more beneficial to retain the services of a professional accountant.
You can set up a partnership with two or more people, although this can also be with a limited company. Partner’s share the responsibility of running the business and will also pay individual tax on any profits the business makes. Likewise, everyone in the partnership shares the responsibility for any losses the business makes.
Don’t forget you could start out as a sole-trader and then change over to a limited company when you approach the tax threshold relevant to the country you are registered in.
Remember, it may be worth spending some money on getting professional advice from an accountant, etc. to help you decide what business structure is right for you.
We will look at all the rest of the legal topics later on but if you have any specific questions in the meantime just drop us a line and we will do our best to help you (or point you in the right direction!).
There are many areas of setting up your office and business that you need to consider – have a look at other topics you may want to consider.