Company Formation UK
Company Formation UK
Do you have a sound understanding of a company formation UK wide? Anyone seriously contemplating starting a new company in the UK today owes it to themselves to do their due diligence and apprise themselves of the different and varying company structures that may be available to them and their intended business. Company formation is the physical setting up of a new company and is often then referred to as the legal structure of the company. There are many types of legal structures available in both the UK and offshore to those that wish to form a company. The legal structure used, will determine how the company is formed.
It is often said that not all companies are created equally, and this is certainly the case today. Whether it is as a sole trader, partnership, trust, incorporated or unincorporated company, anyone intending to go into business must be aware of the most appropriate form of company formation in the UK. A qualified and accredited UK accountant, lawyer or financial planner will able to give sound professional advice with regards to the most suitable type of company formation available. It is always recommended that anyone intending to go into business first consult a professional advisor to obtain sound expert advice. This may save you a lot of money in the long run.
The nature of the intended business will often dictate the most suitable type of company formation suitable to that person’s individual needs, that is, what type of business are you intending to operate? A well prepared business plan will usually identify the most appropriate type of company formation. Some businesses will be more suited to different types of structures, so the rules, regulations and procedures with regards to company formation will be significantly different. This is where expert and professional advice is not only recommended but essential.
The most basic form of company formation, or business structure, is that of a sole trader. In fact most businesses in the UK today are in fact sole traders. More often than not your local high street store will be a sole trader. A sole trader is simply an individual who trades under a business or trading name, and as such they are personally responsible for paying their own taxes, and can be held personally accountable and sued under their business or trading name. An incorporated company however is a distinctly separate legal entity controlled by shareholder and directors, and as such the company is responsible for its taxes and can be sued separately.
The costs for setting up a company as a sole trader are relatively inexpensive and quick, with significantly less formalities to that of an incorporated company, which can be time consuming and costly.