The following Corporate guidance note provides comprehensive and up to date legal information covering:
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.
Not every vehicle will suit the needs and demands of a 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 is 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 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 unsuitable, an alternative vehicle may take over that business, although a change of vehicle may be costly, depending on the circumstances.
Among the most common forms of vehicle used to carry on business in England and Wales are:
a sole trader
a limited partnership (LP)
a limited liability partnership (LLP)
a company limited by shares
a company limited by guarantee, and
an unlimited company
The key tax features of each of these forms of vehicle is outside the scope of this Practice Note. For the
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