Which Is The Best Structure For Your New Business?

Starting a new business in the UK is exciting, but it comes with its challenges. This can cause stress and many a sleepless night, if you don’t have the right legal team on your side. Our corporate lawyers in Peterborough can help you on your new business journey. We will give you the peace of mind that your business is legal and protected, to give you the sleep you need to dream, then achieve, your business goals.

One of the first things you need think about for your new business is the best structure. There are three main types of business structures and it’s important you choose the best structure for your business. Each business structure will have its own advantages and disadvantages, along with legal requirements and implications. However, our corporate legal specialists are here to help.

For now, we have put a brief overview together of the three main business structures that you may want to consider.

• Sole Trader

When you are a sole trader, you run your business on your own. This means that you are responsible for all aspects of the business. You will be personally liable for any debts of legal issues that the business faces. It is the simplest business structure, and most popular. This is because it is easy to set up and manage, while offering a business owner flexibility.

• Limited Company

A limited company is a business structure where the company is a separate legal entity from its owners. In addition, the owners are known as shareholders of the business. This means that the company is liable for any business debts and the shareholders personal assets are protected. When you set up a limited company there will be more administration work and financial reporting requirements that a sole trader business, for example. You will also need to choose if you want to be a private limited company or a public limited company.

• Partnership

When two or more individuals come together, they can create a partnership structure for their new business. This means that all responsibilities, profits and losses are shared between the parties as per the terms outlined in the partnership agreement. There are different types of partnership business structures to consider. Our small business corporate solicitors can help advise you on the best partnership and put all required contracts and agreements in place to support all parties and the business.

Need help, support or guidance with the legal side of setting up your new business? Call our start-up business legal experts in Peterborough now.