When starting a new business, one of your very first concerns should be your business structure. Effectively structuring a new business is crucial, and there are many things to consider when selecting the right structure such as:
- Minimising tax in both the short and long term
- Protecting your assets
- Minimising risk
- Business succession and ability to transfer ownership in the future
- Compliance costs
The most common type of structures include:
- Sole Trader
- Joint Ventures
Pros and Cons of each of the structures
Each option has its advantages and disadvantages, which is why it is important to choose a structure that has been personally tailored to your business needs. By choosing the right structure from the start, you can help limit consequences throughout the life of the business.
At Ashok Parekh & Co, we can discuss the process of setting up a new business and reviewing existing business structures to see if we can offer a more beneficial option for you.