There are many reasons why a business may be advised to be operated through a company limited by shares or a limited liability partnership, the primary commercial benefit for many is to reduce risk. However, for some there are positive reasons that include succession, business change or reward and for others the ability to raise finance and secure debts.
And of course, there is taxation. A limited liability partnership is not a taxable entity – the partners continue to be assessed as self-employed in most circumstances on their share of profits. A limited company will introduce many new tax considerations from how to set up and move the trade into the company and what assets are owned by the company through to how income is taxed for the owners / managers and the company itself and different reliefs that can be used as well as pitfalls to avoid.
We are able to discuss options for existing businesses or for a new start up to consider the correct structure for its activity. Jargon free and with clear guidance our advisers are able to assist you with this important decision.