Choosing the right business structure
Choosing the right business structure can seem a confusing task. Nevertheless, it is important to understand which legal entity is most suitable for your business.
Above all, you are choosing a legal structure for your business. Therefore, it is important to do your research first. Likewise, to work out what is best for you and your business. Not doing so could have far-reaching consequences. It could also be difficult to rectify in the future.
Options for choosing the right business structure
Are you a sole trader? On the other hand, a partnership? Do you need to be a limited company? In short, there is no general way to answer this. That is to say, there is no ‘one size fits all’ approach for choosing the right business structure.
Above all, therefore, which legal entity is best for your business depends on your specific circumstances. Furthermore, there are a number of factors to consider…
· Firstly, for example, if you intend to employ people.
· Secondly, for instance, if you work from home or intend to have premises.
· In addition, if you are setting up the business alone or not.
General advice about different types of legal entities is available on the Companies House website. (Details in the further help section below.) Nevertheless, if you are still not clear then seek further advice.
Read more about your options here.
In addition, feel welcome to call the Worthwhile team – we are always happy to help.
Your obligations when choosing the right business structure
Most importantly, inform HMRC.
In other words, once you know which legal entity your business needs to be, you must register it with HMRC.
How you register with HMRC depends on what type of business you are setting up. Nevertheless, it is very important to reach out to them as soon as you can.
If you have trouble reaching HMRC by phone, then there are forms available online.
Remember, here at Worthwhile, we can deal with HMRC on your behalf once you become a client. Worthwhile Accountancy is an approved HMRC agent and in regular contact with HMRC.
Further information for choosing the right business structure
For specific pointers, reach out to the Worthwhile Accountancy team who are happy to have an initial chat for no cost. Likewise, they can provide pointers on all of the issues covered here. Call 07507 751400. Alternatively visit our website at https://worthwhileaccountancy.co.uk/
Further helpful links
https://companieshouse.blog.gov.uk/2018/07/18/choosing-the-right-business-structure/
Choosing the right business structure
https://www.fsb.org.uk/
