You’ll need to weigh up the advantages and disadvantages of the various possible structures. Consider whether you want your finances to be separate from the business. For example:
- Are you willing to spend the extra time it will take to set up a company or LLP and deal with its administration?
- Do you mind financial information about your business becoming public if you need to file it at Companies House?
- What about the image of your business; will it seem more professional or established if it’s registered and regulated by Companies House?
Consider tax aspects
Don’t forget that selecting a certain business structure will have different tax implications. Your decision will affect the tax you and your business pay and impact potential tax reliefs and grants. You may find it advantageous - and cost-effective in the long run - to obtain advice from an accountant or professional tax advisor.
For more information, read Choosing your business structure.