Choosing a new business structure

It can be very bewildering deciding how to set up a legal structure for your new business. You will already have some idea whether you are to set up this business on a small scale and will undertake the product manufacture or business services on your own, or whether you are to work with others or need to seek a more formal structure which will protect your financial liability. Basically there are three options for setting up a new business –

firstly to be self employed, secondly to set up in a partnership with another person or thirdly to set up a limited company. It is best to know what legal and financial implications there are for each of the options, including what requirements there are for registering your business for tax and National Insurance as well as the legal requirements there are for keeping business records. It is useful to take appropriate levels of business advice for the pros and cons of different options especially if an individual is setting up initially alone – if it is likely that the business may well soon need further help then it may well be that a limited company which will give a legal framework for employment and sorting out payroll solutions, is a better option. Whatever business structure the new business is started under there will be the same need for careful and systematic accounting and record keeping-ideally with say, business accounting software that can keep a grip on all aspects of business management and will scale up when needed.