What are the different types of business structures in the UK?
There are several different types of business structures that you can choose from in the UK:
Sole trader: A
sole trader is a business owned and run by a single person. The owner is personally responsible for all aspects of the business, including any debts or losses.
Partnership: A
partnership is a business owned and run by two or more people. Partners are personally responsible for the business's debts and liabilities.
Limited partnership: A
limited partnership is similar to a partnership, but one or more of the partners (called "limited partners") are not personally responsible for the business's debts and liabilities.
Private limited company: A
private limited company (Ltd) is a business that is incorporated and legally separate from its owners. The owners (called "shareholders") are not personally responsible for the company's debts, but they may be liable for any unpaid share capital.
Public limited company:
A public limited company (PLC) is a company that is listed on the stock exchange and can sell shares to the public. Like a private limited company, a PLC is a separate legal entity from its owners and the shareholders are not personally responsible for the company's debts.
Limited liability partnership: A
limited liability partnership (LLP) is a partnership in which the partners have limited liability for the business's debts and liabilities.
Each type of business structure has its own advantages and disadvantages, and the right choice for your business will depend on your specific circumstances. It's a good idea to seek advice from an accountant, before deciding on a business structure. If you are looking to speak with an accountant at Moore (South) then
we offer a free initial consultation.