You’re prepared and ready to start your new business, but how should you decide on the correct legal structure? The answer to this question should not be taken lightly, as the legal structure you choose can have a significant impact on your ability to grow and survive.
There are many structures which can be considered depending on the activities and needs of your business; however it is unlikely that as a new start, you will need to start as a public limited company (PLC), or offshore company. Other structures such as community interest companies (CIC) and co-operatives tend to be required in specific circumstances.
The best initial approach is to keep it as simple as possible as using more sophisticated structures can come later.
At the beginning you are better off sticking to simpler structures like sole trader or limited company.
Below is a table showing a few pros and cons for different structures:
Take a listen to gain further insight into how you can decide which legal structure is best for your business:
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