Choosing the Right Business Legal Structure
- Price: £3.60
- Published: May 2015
- Type: Business Information Factsheet
- Format: PDF
Anyone starting a new business needs to decide which legal structure it will have, and before starting up should carefully consider the issues involved, including their own potential liability for any future business debts, and the tax implications of their chosen structure.
This factsheet outlines the main legal structures for a business, which are sole trader, ordinary partnership, private limited company, limited liability partnership (LLP) and community interest company (CIC).
Different types of business such as franchises, co-operatives and not-for-profit organisations (which are not in themselves legal structures) can be set up as sole traders, partnerships or limited companies as appropriate.