Legal Structures: the basics
To put your business on a proper footing with HM Revenue & Customs (HMRC) and other authorities, you need to make sure that it has the right legal structure. It’s worth thinking carefully about which structure best suits the way that you do business, as this will affect:
- 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.
If you are not sure which legal structure would best suit your business, you can get advice from an accountant or solicitor.