Business Tax: Establishing business

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Lucy Mangan - Menzies Accountant

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:

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  • Tax implications  
  • Administration requirements/costs 
  • Flexibility 
  • 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. 

Contact Menzies Business Tax Team

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