You must choose a business structure when you start a business.
The structure you choose will define your legal responsibilities, like:
- the paperwork you must fill in to get started
- the taxes you’ll have to manage and pay
- how you can personally take the profit your business makes
- your personal responsibilities if your business makes a loss
Types of business
Most businesses in the UK are:
If you’re setting up a small organisation like a sports club or a voluntary group and don’t plan to make a profit, you can form an ‘unincorporated association’.
There are other legal structures which are specific to businesses that help people or communities eg ‘social enterprises’.