There used to be a post on here called "Starting or Running Your Own Business" (http://www.uk-yankee.com/wiki-manual/index.php/finances/self-employment) but it doesn't exist anymore. I want to say that this is where I read that as a US citizen, you had to employ British people if you wanted to start your own business in this country. Is that still the case? I read another thread by Stephanie303 (I think) that said she started her own cleaning business, but I'm wondering if that's legal...
I have ILR and have lived in this country since Christmas of 2007. I was married to a Brit when I moved here and we've since divorced. I live here with my daughter who has dual citizenship.
I want to work for myself as a web developer / UX designer, but don't want to have to employ anyone as I'm just starting out. Anyone know where I can find a definitive answer on this?
Everything KFDancer and jimbocz told you is true.
Keep in mind that you don't ::need:: to start a limited company to be self-employed. You can also register with HMRC as a sole trader. There are advantages and disadvantages to both models, depending on your situation, services, expenses, desires, etc etc.
Either way, I would recommend speaking to an accountant to determine which self-employment route (limited company or sole trader) is most advantageous to you. It's a particularly good time of year to do so, if you want to start with the new tax year and make that part of business life slightly easier for yourself.