Guide

Legal structures: the basics

Introduction

If you are considering setting up a business, it's worth thinking carefully about which structure best suits the way that you intend to do business, as this will affect:

  • which authorities you have to notify that your business exists
  • the tax and National Insurance that you pay
  • the records and accounts that you have to keep
  • your financial liability if the business runs into trouble
  • the ways your business can raise money
  • the way management decisions are made about the business

There are several structures to choose from, depending on your situation. This guide will help you understand the differences between them.