Saturday, June 14, 2025
  • Contribute
  • News
  • Authors
No Result
View All Result
National Headlines
  • Business
  • Finance
  • Politics
  • Science
  • Sports
  • Technology
  • Business
  • Finance
  • Politics
  • Science
  • Sports
  • Technology
No Result
View All Result
National Headlines
No Result
View All Result
Home Business

Starting up? Here are the different types of business in the UK

by Emily Graham
20/09/2021
2 min read
Starting up? Here are the different types of business in the UK
0
SHARES
88
VIEWS
Share on FacebookShare on Twitter

Are you thinking of starting a business in the UK? If you’ve answered yes to any of the above, then this post is for you. Starting a business in the UK is quite straightforward. However, it does mean deciding what business entity you should choose.

Each type of business has different legal forms, but there are also different tax consequences waiting for you after choosing one form over another. For example, if you decide to go with a sole trader or partnership, it is possible to save money on tax in most cases, but be mindful of the administrative costs, particularly if you are just starting out.

Below we look into the different forms of businesses in the UK to give you a better idea of what you’re getting yourself into.

Business types in the UK

Sole Proprietor

A sole proprietor is a person who owns his entire business. Such self-employed people are also known as freelancers. They sell the skill, talent and knowledge and enjoy total discretion for making decisions regarding the functioning of their business and its policies.

If you are a freelancer or self-employed business owner with a business address in the UK, it may be worth considering becoming a personal service company. This status will have advantages for tax, national insurance and being able to claim expenses for vehicles, i.e. fuel, tolls, parking tickets etc.

Partnership

A business partnership is when two or more people join together to share the profits and losses of a business. The profits and losses are shared equally between the partners.

These people are both owners of the business in their own right, sharing the cost, responsibility and profits of the business equally.

Public Limited Company

Public limited companies, as the name suggests, are companies listed on the stock market and whose shares can be publicly traded. They are companies of a certain size with a minimum share capital requirement of £12.5 million, though many larger PLCs have much higher capital requirements.

Which type of business structure should you choose?

Choosing the right business model is one of the most important decisions you will make for your company, yet there are so many choices out there, it can get overwhelming. What form of business should your startup be? Freelance work? Limited company? Partnering with other companies? Subcontracting jobs to other people? Franchising your business idea?

As you can see, there are many different types of business structures, and it can be confusing to figure out which one would be the best for your own situation. It’s important to understand this because this will directly affect your tax liability and how much capital gains tax you may have to pay in the future.

One of the most popular business structures among startups is incorporation because it provides a certain level of legal protection which wouldn’t otherwise be available.

ShareTweetShareShare

Related Posts

Top Mistakes to Avoid When Giving Corporate Gifts to Clients
Blog

Top Mistakes to Avoid When Giving Corporate Gifts to Clients

16/05/2025
What’s the British SME scene going to look like in 2020?
Business

Paul Simonson: Becoming an Accountant

12/09/2024
Mastering Your Channel Sales Strategy: Unlock New Markets and Maximize Growth
Business

Mastering Your Channel Sales Strategy: Unlock New Markets and Maximize Growth

09/09/2024
The Lifestyle Marketeer Programme: Improving Expat Life with Digital Marketing
Blog

How to Register a Trademark

30/08/2024
Thought leadership
Blog

Thought leadership: Four important considerations many executives overlook

12/08/2024
Retention Strategies
Business

Crafting Effective Retention Strategies to Boost Customer Loyalty

05/08/2024
No Result
View All Result

Looking for writing opportunities

Get in touch to find out more.

Start Writing

Topics

  • Automotive
  • Business
  • Education
  • Employment
  • Entertainment
  • Finance
  • Healthcare
  • Legal
  • Lifestyle
  • Politics
  • Property
  • Science
  • Sports
  • Technology
  • Travel

Latest News

  • Trending
  • Comments
  • Latest
Andrea Orcel’s plans for UniCredit receive praise from investors

Andrea Orcel’s plans for UniCredit receive praise from investors

28/04/2022
Managing Waste in the Film Industry

Managing Waste in the Film Industry

12/10/2020
Perils of Efficiency: Procuring Supplies During a Crisis

Perils of Efficiency: Procuring Supplies During a Crisis

04/10/2021
Health and Safety Regulations and the RIBA Plan of Work

Health and Safety Regulations and the RIBA Plan of Work

27/10/2020
Loadhog Estimates 108 Million Metres of Stretch Wrap Eliminated Through Use of Pallet Lid

Loadhog Estimates 108 Million Metres of Stretch Wrap Eliminated Through Use of Pallet Lid

12/10/2020
Syrian photographer who rescued child after Aleppo bombing releases first documentary

Syrian photographer who rescued child after Aleppo bombing releases first documentary

Race Favourites Ahead of the 2021 Paddy Power Irish Cambridgeshire

Race Favourites Ahead of the 2021 Paddy Power Irish Cambridgeshire

How Houseplants Can Boost Your Time At Home

How Houseplants Can Boost Your Time At Home

Why now could be a surprisingly good time to start a business

Starting a business post-Covid? 3 tips for success

Flight Delay Compensation: All You Need to Know

Flight Delay Compensation: All You Need to Know

How Cosmetic Dentistry in Turkey Became a Trusted Choice for Natural Results

How Cosmetic Dentistry in Turkey Became a Trusted Choice for Natural Results

12/06/2025
Eight Banking Moves to Make Before Becoming a Digital Nomad

Eight Banking Moves to Make Before Becoming a Digital Nomad

11/06/2025
Rolph Balgobin: The Balgobin Family Bursary

Rolph Balgobin: The Balgobin Family Bursary

03/06/2025
Fruit Trees

How to Prune Fruit Trees

22/05/2025
Top Mistakes to Avoid When Giving Corporate Gifts to Clients

Top Mistakes to Avoid When Giving Corporate Gifts to Clients

16/05/2025

National Headlines

Recent News

  • How Cosmetic Dentistry in Turkey Became a Trusted Choice for Natural Results
  • Eight Banking Moves to Make Before Becoming a Digital Nomad
  • Rolph Balgobin: The Balgobin Family Bursary
  • How to Prune Fruit Trees

Topics

  • Automotive
  • Business
  • Education
  • Employment
  • Entertainment
  • Finance
  • Healthcare
  • Legal
  • Lifestyle
  • Politics
  • Property
  • Science
  • Sports
  • Technology
  • Travel

Newsletter

Subscribe to our mailing list to receives daily updates direct to your inbox!

*We hate spam as you do.

© National Headlines

  • Contribute
  • Sitemap
  • Authors
No Result
View All Result
  • Home

© 2019 National Headlines.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT