Business Structure
Business Structure
ASetting up a business can be daunting. When understanding where to start three key questions need to be answered.
1. What do you want from the business personally? Answering this questions helps you identify as an individual the purpose of the business and how to achieve the desired goal. Whether this is to achieve a specific level of personal income, support another venture or maybe even support a community. By understanding it’s true purpose a structure and strategy can be implemented to achieve this goal.
2. How should the business be structured? By understanding the purpose of the business it can be set-up to support the desired goal. Whether this is to maximise take home pay through a company and share structure, or a charity to take advantage of tax exemption to maximise the benefit to the community.
3. What HMRC and other regulations need to be met? All businesses should be registered with HMRC and may have filing obligations. Depending on the complexity of the entity there may be more complicated filing requirements. If you have little or no knowledge it may be worthwhile setting up a simple structure initially and converting at a later date.