So, you have decided you are going to be the master of your own destiny and are going to start your own insurance brokerage.
What is the right way to structure your business?
1. Limited company v’s sole trader – One of the first decisions you will have to make is whether you are going to trade as a limited company or as yourself. Of the 52 brokers who are currently members, the vast majority have incorporated. Having a limited company means you are restricting your possible losses, with the reverse being possible when trading as a sole trader.
2. Shareholders – It is often the case that businesses find a variety of shareholders. Although you may feel that you do not want to dilute your shareholding, consider what they may bring to the table. It might be business contacts, investment or even being your major customers.
3. Trading from office or home – In the early days, our experience teaches us that its best to keep costs low. Often office shares work well in the early days.
4. Bookkeeping and accountancy – Often this is left until the end of the first-year trading with some considerable difficulties. At Movo we provide a supported package for startups that includes bookkeeping and accountancy. But if you do not join us or opt against this, consider opening your own company via Companies House and make sure you retain all your codes as you will need this.
These are just some of the considerations of how to structure your startup insurance brokerage.
Why not talk to the Movo Partnership about your current circumstances, we’d be happy to help you come to a decision on how best to move forward. We also have a variety of support packages to help you get started should you decide to work with us.
All conversations are always kept confidential.