{"id":18344,"date":"2014-07-15T16:08:33","date_gmt":"2014-07-15T15:08:33","guid":{"rendered":"http:\/\/startups.co.uk\/?p=18344"},"modified":"2023-02-17T10:10:23","modified_gmt":"2023-02-17T10:10:23","slug":"choosing-the-right-business-structure","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/setting-up\/choosing-the-right-business-structure\/","title":{"rendered":"Sole trader vs limited company or partnership: which company structure is right for you?"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]If you’re debating whether to set up your business as a sole trader or limited company, then it’s important to understand the impact of each business structure. A business structure is the category your business is classed under. ‘Sole trader’ and ‘limited company’ are two of the most common for solo entrepreneurs starting out.<\/p>\n

It officially determines who will be making the business decisions, how much tax you’ll pay (or tax breaks and deductions<\/a> you’ll receive), how you’ll be allowed to raise funds and who has financial liability for the business — until such time that you outgrow your structure or choose to change to a different one.<\/p>\n

If you have no idea where to start, don’t worry. We know you’re probably eager to start trading as soon as possible amidst the recession and the cost of living crisis where every lost moment counts.<\/p>\n

There are other types of business structures (including public limited companies, co-operatives, offshore companies and franchises<\/a><\/strong>, for example), but in this article, we will be focusing on these four most common business structures, and by the end, you’ll be able to make a confident decision on which to choose to avoid costly and time-consuming mistakes.[\/vc_column_text]<\/p>

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\n In this article, we will cover: <\/h3>\n