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