Getting started in business?
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Getting started in business? This is a "taster" menu-checklist for advisers to talk over with new clients. Noting that we have many more guides covering each aspect on this webservice - see the main menu.
Which trading vehicle is going to be most suitable for me?
- Trading vehicles: introducing the different trading vehicles used in the UK and Europe.
- Which trading structure is suitable for me? a concise side-by-side comparison of the different trading vehicles used in the UK.
- Partnerships: a concise comparison of the different types of partnership recognised in the UK.
- Sole trader v limited company: an "At a glance" comparison of tax and legal treatment.
Tax: which structure is likely to save the most tax?
- Sole trader v limited company: tax differences and savings (2018/19): which is most tax efficient?
- Will I pay less tax if I trade via a LLP? comparing a company and a LLP
Basic formalities and legal agreements
- There are different types of partnership in UK law each covered by their respective partnership acts setting out various defaults.
- It is advisable to draw up an agreement to suit the nature of the partnership.
- We don't provide a template at this time because partnerships vary so greatly in size and activities that we don't think that a "one size fits all" approach is ever suitable.
- If you chose to trade though a company you need to form a new company with Companies House.
- Companies can be unlimited, limited by guarantee or limited by shares.
- If you are running a non-for profit organisation then you may consider being limited by guarantee.
- The majority of trading companies are limited by shares.
- Before you get started you need to plan your share classes, consider whether to modify the Articles of Association and/or draw up a shareholders agreement. You can also make amendments following formation.
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