GROW

Once you become a limited company, especially if you plan to employ people, you and any fellow directors have plenty of responsibilities. The success of your company will depend on making sure you comply with everything from health and safety to employment law and tax.

You run the risk of serious penalties if you don't ensure that:

• key information is sent to Companies House
• the company produces accounts
• the board of directors approves the annual accounts
• the report and accounts are presented at a general meeting of the company's shareholders
• minutes are taken as a record of board meetings

If you employ anyone, you're legally required to have employers' liability insurance. This provides cover against claims made by employees for injuries or illnesses they've suffered as a result of working for you.

If you have employees or if customers and the public have access to your premises as part of your business, you may have to register with the Health and Safety Executive (HSE) or with your local authority.

You may also require a licence if your business poses certain types of environmental risk. For example, if your business:

• Collects or transports waste on behalf of others, you must register with your environmental regulator
• Produces emissions into the air, you may need a permit from your local authority
• Discharges wastewater from your premises into rivers, streams, lakes, ponds, canals, estuaries, the sea or groundwater, you must obtain consent
• Discharges trade effluent into the sewerage system, you must get consent from your water company

When I first thought of opening a salon, I never thought it'd involve so much legal stuff and regulations. You expect some, but I was still surprised. I've kept it fairly simple by staying a sole trader, but there's endless things to think about when I'm employing staff. I got advice from my solicitor, who told me what to really look out for, and so far I've not had any problems. But I'd never think of doing anything now without checking the rules and making sure I'm covered.