Lucy Mangan – Business Tax Partner
When commencing a new business one of the key questions is what form the structure of this business should take. In the UK we have four main options, operating as a sole trader, a partnership, a Limited Liability Partnership (LLP) or as a limited company. A limited company can again take a number of forms, for example limited by share capital or guarantee.
Each structure will have its own associated implications including but not limited to:
- Tax implications
- Administration requirements/costs
- The degree of personal liability and
- Opportunities for raising finance.
What structure is the best fit will depend on a number of factors but it is important to consider this at the outset, as whilst it is possible to change structures, this can give rise to unnecessary costs.