Choosing A Business Structure

Choosing A Business Structure

Choosing the right business structure

Choosing Your Business Legal Structure

Choosing the right legal structure for your business is very important. Not only will this affect your legal responsibilities and tax implications, but also how you may be perceived as a business.

Some Of The Things That You Should Consider When It Comes To Legal And Tax Implication Are:

  • The administrative burden of paperwork that needs to be completed to start your business
  • Taxes that you will have to pay and any exemptions or reliefs that may be available
  • The way you are allowed to take money out of the business
  • How you will be personally responsible should anything go wrong

Remember you can change the business legal structure you initially chose at start-up to a new structure that suits your business better. However, changing it at a later stage can be costly and sometimes quite inefficient.

Types Of Business Structures

Sole Trader

In simple, a Sole trader is someone who chooses to work for themselves. You will need to notify the HM Revenue and Customs (HMRC) that you have started trading your own business. Starting a business as a Sole Trader is probably is quickest and easiest way, but not always the most tax-efficient.

As a Sole Trader, you run your business as an individual and not as a legal entity. All your business’s profits after you’ve paid tax on them are yours.
In addition, Sole Traders also benefit from having the least administrative burden of filing and compliance, however, beware, as a Sole Trader you are personally liable for your business debts.

Sole trader

Limited Company

A Limited Company (whether a Private Limited Company (LTD) or a Public Limited Company (PLC) is a separate legal entity from the owner, formed to run a business. It is one of the most common structures chosen for new companies.

The key benefit of having a Limited Company comes from the fact that it’s a separate legal entity. It hence is responsible for its debts and liabilities rather than the owner. Also, it usually has more favourable tax treatments than a Sole Trader. As with everything, the catch here is the increased compliance and administrative burden that comes with the package.

Partnership

The clue is in the name, a Partnership allows you and your business partners to form a business together, sharing responsibilities and profits. There are two different ways this can be achieved. Through a normal Partnership, where each individual is treated in a similar way to a Sole Trader when it comes to tax and personal responsibility.

Alternatively, a Partnership can be setup under a Limited Liability Partnership to benefit from the corporate veil that Limited Companies normally benefit from.

Why Choose Us

Dedicated Accountant

Providing top service to our clients is at the heart of Fusion accountants work ethos. Hence, one of point of contact, who understands your business and can work with you closely and efficielty.

Accredited Accountant

To ensure that you get efficient and accurate service first time every time, we make sure all our client managers are adequately qualifed and accredited by our accounting softwares providers, such as Xero, Quickbooks and FreeAgent. So you can be rest assured you are in good hands.

ICAEW & ATT registered

We are no cowboys, as a registered firm and regulated by Institute of Chartered Accountants in England & Wales (ICAEW) and the Association of Taxation Technicians (ATT), you can feel assured that you are in good hands.

Transparency & Simplicity

Unlike other accountants, you wont get surprise bills with us, we offer all inclusive competitive monthly fixed fees. We believe in simplicity, transparency when communicating with our client.

Forward Thinking

We love technology, wether its adapting new technology ourselves to bring you top notch service or advising you in running your business more effeiciently through automation.

Value Add Service

We don’t see ourselves as just number crunchers, there are software to do just that, we believe in Value add service, whether that’s in Tax planning, business advisory or just helping you better understand your financials.

Leave A Message

We will endeavour to reply within 24hrs.

Leave A Message