Legal structures for businesses - an overview



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, including starting a private company, becoming a sole trader or entering business partnerships. This guide will help you understand the differences between them.

Free business start-up support

Access free start-up business support from your local council. If you have a great idea but you're not sure how to turn it into a business, or you have already started out in business and require mentorship on your next steps, Go Succeed Start experts will help you to create a business plan, seek funding and put all the foundations in place to get your business up and running.

Complete a short enquiry form or call 0800 027 0639 to register for this free advice and guidance.