Starting a Business Step 4 - Choosing a 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 links below offer a guide to the three main types structure and detail how to register your business with Her Majesty's Revenue and Customs to ensure you pay the correct level of taxation.
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 not so common.
Unincorporated association - small organisations like a sports club or a voluntary group that don’t plan to make a profit.
Social enterprise – businesses that help people or communities.
Growth Hub providers – help with choosing your business structure.
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Growth Hub engagement officers can offer you up to 12 hours free advice and assistance. If you would like to contact the Growth Hub team or arrange a call back to discuss starting a business click here.