Do you operate as a sole trader, partnership, limited liability partnership (LLP) or incorporated company?
The Commercial team at Goughs are asking whether you have explored the options available to you.
Assessing the benefits of a business structure with a member of our experienced team could offer you greater protection in respect of your liability, more flexibility on the organisational structure of your business and different tax treatment of your income.
This can all have a part to play in the success, profitability and longevity of your business.
There are of course advantages and disadvantages of each and with any business structure, ensuring it is the right one for your business is key. This will greatly depend on the business itself.
How a business is run and by whom may affect how you plan to deal with the profit sharing and decision making in a business. Smaller family run businesses will also need to consider how your business structure could affect how you deal with succession planning.
Setting up a company can be straightforward and can either take place at the start of the business venture or during the life cycle of the business.
Having the correct business structure in place could assist with your exit strategy and provide the potential for ambitious employees to invest in your business.
There are two options when it comes to setting up the company; the first of which is referred to as buying an ‘off the shelf’ company, with the second option being a tailor made company.
An ‘off the shelf’ company is a company (already incorporated) which is lying dormant, not yet having traded. Company formation agents and law stationers register these companies with standard model articles and then sell them to buyers.
A tailor made company involves the preparation of the company’s rules and regulations to suit your business’s needs via an application process on www.companieshouse.gov.uk.
The legal process on forming an LLP is straightforward and similar to setting up an incorporated company.
The flexibility of incentivising and rewarding key members of staff, allowing for bespoke profit sharing ratios and improvising cash flow are just some of the benefits an LLP can offer your business.
Whether you are starting a new business, considering a restructure or simply wish to know more about other business structures which could benefit you and your business, we would invite you to get in touch with one of our commercial lawyers today who will happily provide advice and assistance, tailored to the individual circumstances of your business.
We aim to best meet the need of your business and recognise that when it comes to the structure there is no ‘one size fits all’.