Business vehicles

What choices are available?

The main UK business vehicles available are:

1. •

   a sole trader

2. •

   a general partnership

3. •

   a limited partnership

4. •

   a limited liability partnership, and

5. •

   a company

A summary of the tax consequences of operating a business in each of those structures is found in Practice Note: Forms of business vehicle—tax summary, and a table briefly comparing them is found in: Choice of business vehicle—tax comparison table. For specific rates and thresholds applicable to the current tax year, see Practice Note: Key UK tax rates, thresholds and allowances.

What tax issues arise?

The factors relevant to the tax element of the decision between different business vehicles are:

1. •

   layers of tax—the number of taxable entities involved in the structure

2. •

   current