Other forms of business vehicle

Choosing a business vehicle

It is important that the most appropriate form of vehicle is chosen to carry on a business—the choice of vehicle may have a bearing on the business’s success or failure.

There is not one vehicle that will suit the needs and demands of every business. Each vehicle has its advantages and disadvantages. The decision as to which vehicle to use to carry on a particular business will be complex and dependent on various legal, tax and commercial considerations—there may not be a perfect fit.

In addition, the vehicle originally chosen to carry on a particular business may not continue to be the right choice of vehicle for that business as it develops and matures. The vehicle chosen to carry on a business should be kept under periodic review. If the original choice of vehicle to carry on a business becomes inappropriate, an alternative vehicle may take over the business, although a change of vehicle may be complicated and costly,...