Are you thinking about setting up a business? If so, one of the first decisions you will need to make is that of business structure.
The main business structures are: sole trader, partnership, limited liability company and limited liability partnership (LLP).
Sole trader – This is the easiest set up, with very little in the way of red tape.
Partnership – This is for 2 or more people coming together to build a business. A partnership agreement should be drawn up to clarify arrangements e.g. profit split.
Limited company – A company has to be registered at Companies House and is subject to certain rules and regulations e.g. filing of annual accounts. Company status gives limited liability (i.e. you are not personally responsible for the company’s debts) and potential tax benefits.
LLP – This is a hybrid between a partnership and a limited company.
At Whitings LLP, we can help you to choose the right structure for your start-up business.