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.
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