Types of Business
We will be publishing an e-book very soon on information to help you decide what type of company is right for you.
In the meantime most people start by being a Sole Trader and simply keep their business life separate by having another bank account so they can keep their tax records organised easily. You don’t even have to do that though!
Partnerships are basically two or more sole traders working together but be warned even the best of friends can fall out over money.
Everyone has heard of Limited Companies and many people think that you are not a proper company unless you are one. This is absolutely not true. You do have to register with Companies House and file your Company accounts online so everyone can see them. The Limited bit normally means that you personally have a liability limited to £1 if the company goes pear shaped.
Limited Liability Partnerships
Limited Liability Partnerships are basically partnerships as above but with the benefit of the limited liability bit in a limited company. They are often used for firms of solicitors or other professionals.
Public Limited Companies are companies in the UK which trade shares on the London Stock Exchange. they are normally fairly large established companies but not always.
Which way to go?
Many people start small as a sole trader and then move to a limited Company and then a PLC but you could downsize from one to another as there are many reasons to influence your decision.