If you’re starting up a small business, it’s important to know which business structure is suitable, as each have different tax implications and legal obligations.
Choosing the best business structure
If you’re starting a business on your own, registering your small business as a sole trader is the easiest solution – there are no registration fees and you keep all the profits. However, you will also be liable for anything that goes wrong, and you may lose your personal assets if the business fails.
If you’re planning on starting a small business with someone else, you may wish to consider a partnership, in which the responsibilities, the liabilities and the profits of the small business are split between you.
A Limited Liability Partnership (LLP) can be best if you wish to focus on protecting your personal assets.
Another option is a Limited Company, which offers financial protection as liability is limited to investment in the company.
Each type of business structure has different tax consequences and so it is vital you take expert advice tailored to your particular circumstances.
If you’re uncertain about which type of business structure would suit your small business start-up best, speak to us. We have in-depth knowledge about each structure, so we’ll know what will work best for your business.
Burt Brill & Cardens Solicitors are experts in small business law. Contact us for a free enquiry.