Forms of business vehicle—fundamentals
Forms of business vehicle—fundamentals

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Forms of business vehicle—fundamentals
  • Contents
  • What different forms of business vehicle can be formed or operated in the UK?
  • What are the differences in tax treatment of different forms of entity?
  • What is a sole trader?
  • What different forms of partnership are there?
  • What are the key features of a general partnership?
  • What are the key features of a limited partnership (LP)?
  • What are the key features of a limited liability partnership (LLP)?
  • What is a company, and what different types of company are there?
  • More...

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.

This Practice Note considers the different available forms of business vehicle in the UK with links to relevant material, and includes summaries of the key features of the most common forms of business vehicle; the limited company, general partnerships, limited partnerships and limited liability partnerships.

Contents

What different forms of business vehicle can be formed or operated in the UK?

What are the differences in tax treatment of different forms of

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