Starting a new business?

Posted on 18th April 2023 by Streets Business Support


Image to represent Starting a new business?

One of the issues you will need to consider if you are starting a new business is the business structure. There are three commonly used forms to choose from, each with advantages and disadvantages.

  • A sole trader – this is the simplest way of starting and running a business. However, you are personally responsible for your business’s debts.
  • A limited company – this means that the business is a distinct legal entity in its own right; quite separate from you as a person, but there are more reporting and management responsibilities. It also means that you cannot simply draw money from the business without considering tax and legal implications.
  • Partnership – There are two main types of partnership, a conventional version where you work with one or more partners in the business. This is the simplest way to run a business for two or more people, however, partners can be personally liable for partnership debts. There is also a limited liability partnership or LLP, this is a more complex structure that provides you and your partners with the protection of limited liability, just as with a company.

Which business structure is best suited to you will depend on a host of factors. This could include your cashflow projections, your longer-term plans for the business, whether or not you need the protection of limited liability, your willingness to comply with legal and administrative obligations and the nature of any inward investment you are seeking.

If you are contemplating a new business venture, please call so we can help you choose the right structure for your business.


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The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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