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A business guide for Young Farmers
from NFYFC and Savills


Business structure

Guide to legal business structure

  • There are no hard or fast rules to business structures, however different structures offer businesses different benefits.
  • The structure of a business will ultimately define the amount of tax to be paid, how profit is taken and one’s personal liabilities within the business.

Common UK business structures

Sole trader

  • Keeps all profit after taxes have been paid.
  • Takes personal responsibility for any losses made.

Limited company

  • The profits are owned by the company.
  • It’s responsible in its own right for everything it does and its finances are separate to your personal finances.  


  • Partners share responsibility for the business.
  • Partners are personally liable for any losses the business makes.

Limited liability partnership

  • Limited liability partners are not personally liable for debts the business can’t pay.