Choosing a business structure

When a business starts up there are a number of different legal structures in which it can operate. Each of these ways have their own implications and their suitability depends on the nature and size of the new business.

The choice of business structure should be considered carefully because the decision will impact upon:

• The ways the business can raise money
• The way decisions are made in the business
• Your personal liability if the business fails
• The records that need to be kept
• The amount of Tax and National insurance that you have to pay

These sections will help you make an informed choice of company structure.