A key decision facing the new business is what business format to choose when starting out. Basically there are a number of options which will be influenced by factors such as:
- How many of you will there be running the business?
- What potential risks and liabilities will you face?
- What are the tax implications of each option?
- How much bureaucracy (red tape!) are you prepared to face?
- Do you want to build a business with an assest value?
If you are setting up by yourself, there are two choices:
- Sole Trader
- Private Limited Company
If there are two or more of you the choice is wider and adds:
- Limited Liability Partnership
I shall deal with each of these in separate articles to try to keep things as simple as possible!