I am Lisa, the Founder of Freyja Fit. I'm a qualified lawyer and chartered tax adviser - an unusual background for a gym equipment brand. But it does make sense, I promise!

For 10 years, I helped grow ForrestBrown, a Tax Consultancy Business, before having my two beautiful boys. I've started small family businesses from scratch and been through all the phases of setting up and running businesses through blood, sweat and tears. Those who know me know that I'm not afraid of hard work which is essential with starting a business.

Growing up, I've always loved sport and exercise. I also genuinely care about people; this has to be a major focus in business - look after your people and team motivation, and business goals will follow (within reason).

Why Freyja Fit? While we have our mission, my personal reason is simple: I love setting up and running a business I believe in. We need to reduce the number of people suffering with mental health challenges - I strongly believe that fitness and nutrition is one way to do this. Eating well, exercising well, with the right PTs and support will go a long way to creating a happier future for more people.

These reasons combined are why we can make Freyja Fit a major success.

But this series isn't just about Freyja Fit. It's about sharing insights from company setup to the complexities of business structuring, legal requirements, tax tips, property acquisitions, company growth and much more - and applying it all to you. Whether you want to set up a brand new gym, become a franchisee, or transition to being a full-time PT, I'm applying my niche expertise to the fitness space. Don't worry, we won't bombard you with everything at once (it's a series). And please do still seek your own professional advice - these are my opinions based on experience and qualifications.

So, where do we start?

The Foundation: Choosing Your Business Structure

Your first business decision sets the foundation for everything that follows. What does this really mean for fitness professionals?

1. Sole Trader: You ARE the Business

2. Limited Company: You OWN the Business

Sole Trader

• All profits are yours (after tax) - but so are all the risks

• Your personal income = business profits

• You file one tax return covering everything

• There is less administration setting up and running a Sole Trader

• You can use your personal name or a business name

• Easier accounting (perfect when starting out)

BUT

• If something goes wrong, your personal assets (including your house) could be at risk

• Getting business loans can be harder

• Growing beyond yourself becomes more complex

• Switching to a limited company later can be costly if not timed right

Limited Company

• Your business is a separate legal entity

• Your personal assets are protected

• More tax planning opportunities (one for another day)

• You will look more professional to commercial clients

• Easier to bring in investors or partners later

BUT

• You must file annual accounts AND confirmation statement

• Corporation tax returns are required

• Director's responsibilities are legally binding

• You may have slightly higher accounting costs

• You need to register before you start trading

So how do you make a decision on How to Structure your New Business?

Starting Out? Here's When Sole Trader Makes Perfect Sense:

If you're a PT starting out, you might be charging £40-60 per session. Running 15-20 sessions a week could bring in £30-50k annually. At this level, the admin costs of a limited company (around £1,000+ annually for accounting) might eat too much into your profits.

But if you're planning something bigger - like opening a studio, selling equipment (like the pastel bumper plates and pretty pink dumbbells (and other high-end gym equipment) that we sell at Freyja Fit), or building a team - the limited company structure makes sense from day one. Why? Because you're likely to scale faster and need that professional structure sooner.

Here's what really matters: It's not just about the income number - it's about your business model and growth plans. I've seen PTs stay as sole traders well beyond £50k because their business model was simple. Meanwhile, others start as limited companies with zero revenue because they're building something bigger from day one.

Diving in a bit further…

As a Sole Trader…Did you know that your first legal obligation starts the moment you earn your first pound, not when you register your business.  The Critical Timing here is that - you then have 3 months to register as self-employed with HMRC from starting a trade.  You can start trading before registration.  Do keep hold of your records from Day 1 though.

As a Company…you will need to Pick Your Name - Check Companies House Name Checker - is the name you’ve worked so hard to come up with actually available?  There are requirements to follow, like not being too similar to a competitor but I won’t go into the full detail on that now.  Don’t panic if the exact name isn’t available, you can always have your legal name and ‘trading as’ to use that name you have worked so hard to come up with.  Do make sure you have the URL and required socials associated with this though.   You must register with Companies House before you start trading.  Company Registration for Corporation Tax is also required within 3 months of starting the business.  Directors will have separate registration requirements.  And if you are planning on hiring or paying yourself a salary, payroll registration is needed as well.  Remember, things like Auto Enrol Pension may need to be set up as well if the thresholds are met.

Remember, if you feel overwhelmed, you can use an accountant to do all of this for you.  Or software like Xero to set up a subscription and run payroll directly through this.  

So when picking what structure to have.  There really is no one size fits all but this should help as a starting point.  As I said, you can use professionals to help with all of this for you.  

Starting a fitness business is about more than just passion and qualifications. It's about building strong foundations that protect you and your clients while allowing your business to grow. In my journey from law and tax to fitness, I've learned that getting these basics right from the start saves both time and money in the long run.

Next week, we'll dive deeper into Understanding Your Tax Position for your fitness business - Company vs Sole Trader, giving you worked examples on what your take home looks like.  

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