When it comes to starting your own business, there are a number of different legal structures that you can consider. The one that you opt for will depend on a number of factors, and it can sometimes be useful to speak with an Accountants Chippenham way, such as chippendaleandclark.com/, to ensure you are picking a structure that works for your future plans for the business. Here are a number of options that you might want to consider.
Sole Trader – as a sole trader, the business and the individual are, in essence, the same thing. The profits that are accrued in the business are transferred to the owner, and they pay the tax on this on a self-employed basis. There are no shareholders in a sole trader business, and the business can not employ staff or enter into contracts to lease property.
Limited Company – in this instance, the directors and the business are classed as two separate entities. The directors can take a salary or dividends from the business, and they will be responsible for paying their own self-assessment tax. The company itself will pay corporation tax on all the profits that are within the business.
Charity – this can be a harder type of company to set up, and you will need to register with charities’ commissions. To call yourself an official charity and be registered with the commission, you will need to have a certain sum of money in your business bank account. You will need to appoint trustees of the charity who will monitor its work and ensure it complies with all legal requirements.