I’m starting a design agency for graphic and web design etc, it will be purely run from home as a cloud based service alongside my full time job. What legal entity would be better to start this as the costs for Ltd are significantly higher.
The simplest business structure is operating as a sole trader; also known as being self employed. There is not legal process to follow to set up as a sole trader except to register with HMRC (see this link https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed).
You can also find some useful information on setting up as a sole trader here:
Just to add that at certain levels of income there can be tax advantages to set up as a limited company although with the dividend tax the benefits are not seen until a profit level in excess of circa £30k.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.