Legal status
There are four main types of legal status available to you when starting a business: sole trader, partnership, limited company and Community Interest Company (CIC). You should consider a range of issues when deciding which of these will be best for your new business, including tax, administration, the image of the business, legal requirements and financial issues.
Hot topic
The Government has published three factsheets in a series of information about Community Interest Companies (CICs), a new legal structure of company that was introduced in July 2005 to boost social enterprise. The publication of the third factsheet, which looks at forming and running a CIC, coincides with the publication of the Community Interest Company Regulations 2005, which were phased in during 2005.
Which legal format should you choose? |When is sole trader status suitable? |
What are the advantages of operating as a sole trader? |
What are the disadvantages of operating as a sole trader? |
What are a sole trader's legal obligations? |
When is partnership status suitable? |
What are the advantages of operating as a partnership? |
What are the disadvantages of operating as a partnership? |
How is a partnership set up? |
What are a partnership's legal obligations? |
Are there other types of partnership arrangements? |
When is limited comapny status suitable? |
What are the advantages of operating as a limited company? |
Are there any disadvantages in operating as a limited company? |
How is a limited company set up? |
What are a limited company's legal obligations? |
Community Interest Companies (CICs) |
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