Types of Business Entity
Most people launch their own businesses because they positively assess their market chances. In other words, they are convinced that running a business on their own will sooner or later bring them commercial advantage.
After deciding to start his own business, the entrepreneur must choose the type of business entity for it. The business entity as for example self-employment or limited company is a legal structure of your commercial organisation. It is a set of legal rules, procedures and regulations to formally arrange the relations between your business and various authorities, including HM Revenue & Customs (HMRC).
The legal structure of your business has a profound effect on:
- Your financial liability if the business become bankrupt;
- The way you can raise funds for your business;
- The taxes and National Insurance Contribution (NIC) you must pay;
- The records and accounts you have to keep;
- The way you can manage your business and made decisions about it.
Taking into consideration the above matters, it is vital to carefully think about which legal structure best suits the way you are going to run your enterprise. There is no doubt that to choose the legal form for your business is one of the most important decisions every entrepreneur has to make at the beginning of his career.
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 email@example.com