Starting a Business: A Legal Checklist

18 August 2025

Launching a business is an exciting venture, but it’s also a legal minefield if not approached with care.

Whether you're a budding entrepreneur or expanding into new territory, this checklist will help you navigate the essential legal steps to get your business off the ground.

1. Business Structure

Choosing the right legal structure is foundational. It affects your liability, tax obligations, and administrative responsibilities.

• Sole Trader: Simple setup, full personal liability.
• Partnership: Shared responsibilities and profits.
• Limited Company: Separate legal entity, limited liability.

 Register your business with Companies House or HMRC, depending on your structure.

 2. Business Name & Intellectual Property

Your business name is your brand’s identity - make it count.

• Choose a unique name.
• Check trademark availability.
• Register the name if required.
• Protect intellectual property (IP) if you're designing, inventing, or branding.

 Tip: Consider trademarking your logo or product names to prevent future disputes.

 3. Licenses and Permits

Every industry has its own regulatory requirements.

• Identify necessary licenses (e.g., food hygiene, alcohol, financial services).
• Apply through local councils or relevant authorities.

Failure to comply can result in fines or closure, don’t skip this step.

 4. Premises

If you're setting up a physical location:

• Find a suitable premises.
• Engage a solicitor to review lease agreements.
• Ensure zoning and planning permissions are in place.

 5. Tax Registration

Tax compliance is non-negotiable.

• Register for VAT if turnover exceeds the threshold.
• Set up a PAYE scheme if hiring employees.
• Register for Corporation Tax if you're a limited company.
• Hire an accountant who understands your sector.

 6. Insurance

Protect your business from unexpected risks.

• Public Liability Insurance: Covers injury or damage claims.
• Employer’s Liability Insurance: Mandatory if you have staff.
• Consider professional indemnity or product liability depending on your services.

 7. Contracts and Agreements

Clear contracts protect your business relationships.

• Draft contracts for employees, suppliers, and customers.
• Use NDAs to safeguard sensitive information.
• Review terms regularly to stay compliant.

 8. Data Protection

If you handle personal data, you must comply with UK data laws.

• Register with the Information Commissioner’s Office (ICO).
• Ensure GDPR compliance in how you collect, store, and use data.

 Data breaches can lead to hefty fines, invest in secure systems and training.

 9. Ongoing Compliance

Legal obligations don’t end after launch.

• Keep accurate financial records.
• File annual accounts and tax returns on time.
• Stay informed on legislative changes affecting your industry.

Need help navigating the legal landscape? We specialise in supporting businesses from startup to scale-up. Contact us today for expert legal advice tailored to your industry. Call: 01202 526343 or send us a message: Contact Us AB Solicitors For Your Legal Needs

Further Information