Sole trader, limited company or partnership? This article gives an overview of some of the different legal structures available to the small business owner and how to go about choosing the right legal structure for your business.
When you start your own business, one of the first things you'll need to do is choose a legal structure. The type of legal structure you choose will impact on:
This is the most common and simplest form of business structure. This is where you trade on your own on a self-employed basis.Find out more
Companies are owned by shareholders and run by directors. They can be limited (usually smaller where shareholders are selected) or public (where shares available for purchase on a stock exchange).Find out more
A partnerships is made up of two or more individuals who run a business with a view to making a profit.Find out more
The way in which the business is formed has a great effect on:
Choosing a legal structure will be dependent on the kind of business you have (or plan to have) and there are pros and cons with any business structure.
It is recommended you speak to a professional accountant or tax advisor to ensure that you have the most appropriate legal structure to operate your business.
Yes, as your business changes / grows, a revised structure may be appropriate or as your personal circumstances change.
It is strongly advised that you seek professional advice before changing your business structure as you will have to meet certain legal obligations.
This page will give you an overview of the self-assessment process and your legal obligations as a self-employed individual.Read more
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