Incorporation and licensing
Options for the type of legal status your company takes will vary from country to country or state to state. We can advise on the options you have in each country.
Our advice would be to go for the equivalent of LLC status in the USA. Some countries (e.g., Switzerland and Singapore) may require you to become licensed in order to recruit, but if it’s not a legal requirement, we’d question the value of spending vital start-up capital on professional memberships.
The time it takes for you to receive your first payment depends on the effectiveness of your launch and the client relationships you have on day one.
Before the first payment hits your account, you will need enough to fund your business and lifestyle. We recommend at least four months’ financial cover in the USA, where notice periods are typically very short, and six months’ elsewhere.
When choosing a bank, it’s worth looking at some of the newer challenger banks, many of which are a bit more dexterous with lower banking charges. Shop around for the best deals for new business accounts.
Banking is relatively straightforward unless you plan to manage temporary employees and contractors – at which point things become considerably riskier and more complicated. It will be worth considering recruitment payroll and finance specialists if you are doing this. Insurance is also going to become more complex, and expensive in this case.
Even if you only hire employees directly, on a permanent basis, you’ll still need to ensure you have sufficient insurance in place.
Finally, you’ll need an accountant to prepare any year-end accounts you have to submit. In your early years, you’ll probably be well-served by a small local firm – choose one with experience of recruitment/service industries, if possible. That said, reporting requirements may be light if you are a small business in your early years, so it’s worth looking at low-cost, digital-led providers.
Reed can have a significant positive impact on your cash flow as you launch, and save you considerable sums when you are starting out. We provide a website, a CRM system, discounted LinkedIn licences (payable in arrears), training, an MS365 suite of products and marketing collateral.