Taking the leap from side hustle to fully registered business is a big moment. Whether you’re freelancing, selling products online, or running a local service, turning your passion into a limited company (Ltd) can offer real benefits – like legal protection, credibility, and tax efficiency.

Here’s a simple guide to help you make the switch.

1. Decide If It’s the Right Time

Ask yourself:

  • Are you consistently making sales or taking on clients?
  • Do you want to grow or hire?
  • Are you ready to handle more admin?

If yes, it might be time to go legit.

2. Choose Your Company Name

It must be:

  • Unique (check Companies House)
  • Not misleading
  • Free of sensitive or offensive terms

You’ll also need a registered office address – this can be your home or a virtual office.

3. Register With Companies House

You can set up your Ltd company online in about 20 minutes. You’ll need:

  • Company name
  • Director details
  • Shareholder info
  • SIC code (explains what your business does)

Fee: £12 (as of 2025) via the GOV.UK website.

4. Register for Taxes

Once registered, you must:

  • Set up a business bank account
  • Register for Corporation Tax (within 3 months)
  • Register for VAT if turnover exceeds £90,000/year

You may also want to register as an employer—even if it’s just you—if you plan to pay yourself via PAYE.

5. Keep Records and Stay Compliant

You’ll need:

  • Bookkeeping system (Xero, QuickBooks, etc.)
  • To file annual accounts and confirmation statements
  • To keep receipts and records for at least 6 years

Consider using an accountant—even if you’re small.

6. Build Your Brand and Online Presence

Now that you’re official:

  • Get a website (even a basic one)
  • Secure your domain and email
  • Set up Google Business Profile and social media pages

Consistency across platforms builds trust.

Why Going Ltd Could Be the Best Move You Make

Turning your side hustle into a limited company isn’t just about ticking boxes. It’s a mindset shift. It signals to customers, partners, and even to yourself that this is no longer “just a bit of extra income”—it’s a real business with long-term potential.

Going Ltd gives you credibility, limits your personal liability, and opens doors to better contracts and funding options. Yes, there’s admin. Yes, there’s a learning curve. But thousands of small business owners across the UK make this transition every year—and you can too.

Start small. Stay lean. But think big. You’ve already proven the demand—now it’s time to build something that lasts.