Your first year in business: deadlines, first customers and your first hire

Get the rhythm of your first year right: returns on time, customers beyond your own network and a deliberate choice about staff.

5 topics Updated 2026

In this topic: Start a business 7

Registered and trading: your first year in business is about rhythm

Returns filed on time, the first customers in and a deliberate choice about staff.

Registered. Now what?

The registration is done, the business account is open and the first invoice has gone out. Then come the questions no start-up checklist covered. When is the first VAT return due? Why does the tax authority want an advance payment on profit you have not made yet? And where does the next customer come from, once friends and former colleagues have all bought something?

Your first year in business is less about big decisions than about rhythm: a fixed moment for the admin, money set aside for tax, and a steady effort to find new customers while you serve the ones you have. It is also the year in which many businesses stop. Of the US private-sector establishments that opened in March 2015, 79.6% were still operating a year later and 50.2% after five years (source: US Bureau of Labor Statistics, December 2025).

Articles on the first year

Compliance calendar

Every recurring return, payment and renewal, with example dates for five countries.

Find your first customers

From your own network to chosen channels, public tenders and clients who do not pay.

Hire your first employee

What to arrange before day one, what an employee really costs and when the hire pays for itself.

Common start-up mistakes

Ten errors that catch new owners, each with what to do instead.

Focus and motivation

From ambition to quarterly goals, and staying motivated when you work alone.

Your first year on the calendar

Most obligations come back at fixed intervals. The dates differ per country and legal structure, but the types are the same almost everywhere.

Obligation	When it usually falls	Who it applies to
VAT, GST or sales tax return	Monthly, quarterly or yearly, a few weeks after the period ends	Every business registered for VAT, GST or sales tax
Advance or estimated income tax	In instalments during the year, based on expected profit or last year's tax	Sole traders and partners with a profit; many companies
Annual income tax or corporate tax return	Once a year, some months after the tax year ends	Every business; a company files its own return
Payroll filings	With every payroll run, plus a year-end summary	Every employer, from the first employee
Annual accounts and annual return	Once a year, after the financial year closes	Limited companies and other incorporated businesses
Licences, permits and insurance	On the renewal date in the licence or policy	Businesses with licences, premises or vehicles
Record keeping	All year, and for several years afterwards	Every business

The compliance calendar turns these types into dates for five countries and gives a monthly routine that keeps you ahead of them.

Three choices in your first year

Where will your customers come from?

Almost every founder starts with their own network. That carries the first months, but a network runs dry. Decide early which customer group you serve best, which two or three channels reach them, what a new customer may cost you and which payment terms you accept. Find your first customers shows how a landscaper counted this after six months and what he changed.

When do you hire someone?

An employee adds capacity and brings obligations from the first working day: registration, payroll, insurance and, in many countries, wages during sickness. Check whether the work is structural and whether the extra margin covers the full employer cost. If not, a freelancer, an agency or outsourcing may be the better step for now. Hire your first employee works out when a hire pays for itself.

Do you grow or stay small?

Staying small is a sound choice, as long as your rate covers your costs and your buffer survives a slow month. Growth is a strategic decision: more staff, fixed costs and risk in exchange for more capacity. Read about strategy before you choose, and compare your margins with similar businesses in the profit and cost benchmark or the industry figures.

The first year is part of Start a business. For rates and your own pay, see money, pricing and income; for the bookkeeping behind every return, tax and bookkeeping.

When is my first VAT return due?

That depends on your registration date and the return period you are given. The first return runs from registration to the end of your first period and is due a fixed time later. In the UK that is one calendar month and 7 days after the end of the period (source: GOV.UK, September 2026). An Australian quarterly BAS for October to December is due on 28 February (source: Australian Taxation Office, September 2026). In Germany the VAT advance return is due on the 10th day after the period (source: Baden-Württemberg Tax Administration, October 2026). Your registration letter states your own periods.

Can I use a small-business VAT exemption?

Often, below a turnover threshold that differs per country. In the UK you must register once taxable turnover over the last 12 months goes over £90,000 (source: GOV.UK, September 2026). EU member states may set a national threshold of up to €85,000 (source: European Commission, October 2026); Germany uses €25,000 for the previous year and €100,000 for the current year (source: Baden-Württemberg Tax Administration, October 2026). Australia requires GST registration from a GST turnover of A$75,000 (source: Australian Taxation Office, September 2026), and in Canada you are a small supplier if you stay under C$30,000 over four consecutive calendar quarters (source: Canada Revenue Agency, June 2026). Staying out also means you cannot reclaim VAT on purchases.

How long must I keep my business records?

In the US, generally 3 years, and at least 4 years for employment tax records (source: IRS, June 2026). UK sole traders keep records for at least 5 years after the 31 January submission deadline, UK companies for 6 years from the end of the financial year (source: GOV.UK, September 2026; GOV.UK, October 2026). Canada asks for six years from the end of the last tax year concerned (source: Canada Revenue Agency, August 2026), Australia generally five years (source: Australian Taxation Office, August 2025). Longer periods can apply to property and losses.

What do I need to arrange for a first employee?

In most countries: register as an employer before the first payday, check identity and right to work, put the contract in writing, set up payroll and arrange the required insurance and, where it applies, a workplace pension. The article on hiring your first employee has a country table and a cost calculation.

Sources

US Bureau of Labor Statistics: Survival of private sector establishments by opening year (December 2025)
GOV.UK: VAT Returns, deadlines (September 2026)
GOV.UK: When to register for VAT (September 2026)
European Commission: VAT rules for small enterprises (SME scheme) (October 2026)
Australian Taxation Office: Due dates for lodging and paying your BAS (September 2026)
Canada Revenue Agency: When to register for and start charging the GST/HST (June 2026)
IRS: How long should I keep records? (June 2026)

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