Different Types of Business Entities
Once you have decided to start your own business, you must choose the type of business entity for it. A business entity, for example a private limited company by shares or limited liability partnership, is a legal structure of your commercial organisation. It is a complex set of legal rules, procedures and regulations created in order to formally arrange the relations between the business and various authorities, including Companies House, HMRC etc.
It is vital to understand that the legal structure of your business has an effect on:
- Taxes and National Insurance Contribution (NIC) you must pay;
- The way you can manage your business and made decisions about it.
- The records and accounts you have to keep;
- Your financial liability if the business become bankrupt;
- The way you can raise funds for your business;
Taking into account the above matters, it is so important to carefully consider which legal structure is the best to run your enterprise.
If you would like to discuss with an expert which business entity suits your business best, please call us on +44 (0) 20 7060 7326 or send an email to firstname.lastname@example.org