Choosing your business structure
You must choose a structure for your business. This structure will define your legal responsibilities which include:
- the paperwork you must fill in to get started.
- the taxes you’ll have to manage and pay.
- how you can personally take the profit your business makes.
- your personal responsibilities if your business makes a loss.
You can change your business structure at any time if a different structure suits your business needs better.
The main types are:
- Sole Trader – people working for themselves.
- Limited Company – an organisation you set up to run your business.
- Business Partnership – where you share responsibilities with others.
There are other forms of business structure that are no so common. These include:
- Unincorporated association - if you’re setting up a small organisation like a sports club or a voluntary group and don’t plan to make a profit.
- Social enterprise – if your business helps people or communities.
Growth Hub providers – help with choosing your business structure.