Starting a business - which business structure to use?
Choosing the right business structure is essential for a range of business and tax reasons.
VNF Accounting can help start-ups and businesses within the UK
You will need to decide which business structure best suits your needs:
a sole trader/self-employed (an individual);
a partnership (two or more individuals or companies);
a limited liability partnership or
a limited company.
There are both advantages and disadvantages for each trading structure in terms of control, support, costs and probably the most important - tax implications.
Each situation must be judged individually. so always take professional advice. As well as the tax and national insurance issues, you will need to consider such things as the nature and expected rate of growth of the business, the degree of commercial risk, administrative obligations and pensions.
In the early years of a business, operating as a sole trader is often attractive because funds can be used with fewer restrictions. But as your business grows, there may be advantages to incorporating (forming a limited company).
If you are thinking of starting up in partnership, it is essential to have a formal agreement drawn up and to take professional advice.
Please get in touch with us - we can help you through the decision-making process.