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44 • The 100 Greatest Ideas for Building the Business of Your Dreams

Setting up as a sole trader

• Tell your local tax inspector and contributions agency. You may be surprised
how helpful these people are, and they have loads of brochures that cover
most situations.

• Make sure there is no planning problem with starting a business in the loca-
tion you have chosen.

• If you give your business a different name from your own, don't forget to
include your name somewhere on your headed notepaper.

• Decide, probably by talking to the VAT office, whether or not you need to
register for VAT.

Setting up as a partnership:

The only drawback of a partnership is that each partner is jointly liable for the debts
of the partnership. This means that if there is trouble, no matter who caused it, your
assets, including your home if you own it, are at risk. This means that the degree of
trust required in a partnership is very high indeed. Except with your life partner,
and even some would say in that case, never have an informal partnership arrange-
ment. It is relatively easy to get a general partnership agreement that could fit your
case; otherwise you may have to explain what you want to a lawyer and pay for a
tailored agreement.

Think ahead and make sure that the agreement covers any eventuality. Make
sure the agreement describes in detail how the business will be managed and con-
trolled. Keep in mind the next idea.