There is an almost limitless number of possibilities when considering how to structure a new business venture. These can range from a sole trader or simple general partnership, with only two or three partners, to complex structures involving groups of companies or Limited Liability Partnerships, with corporate members, where a company is also a partner in the LLP.

The wide choice of possible structures can be narrowed however, by answering a few straightforward questions:

• How many individuals will be “running the business”?
• Will the business employ staff – in how many locations or jurisdictions around the world?
• Is there one business or could there be several separate “profit centres” and how are these to be managed?
• What is the risk profile of the business and is it important to protect the owners by limiting their liability?
• Will there be major capital expenditure on property acquisitions or plant and machinery?
• Will it be necessary to attract outside investors by offering attractive tax breaks for investment?
• What plans are there for expansion and growth and is an exit or sale likely in the short-term?
• Will profits be extracted or re-invested in the business?

Often the structure of an existing business will have developed over time through growth and acquisition. What is left can often be unwieldy and inefficient and you could be paying significantly more tax each year on your profits and income than you need to.

Whether you have an existing business or whether you setting up a new one, our team is able to provide advice on the most appropriate structure or restructure to suit your immediate and future needs. From our experience it is generally the case that a simple “off-the-shelf” partnership or limited company will not provide sufficient freedom and flexibility to meet the current and future needs of most businesses.

With proper consideration it is usually possible to restructure and reduce the tax burden, whilst continuing to protect the liability of the principles and thereby provide a more competitive advantage for the future.

Please contact us to discuss business structuring opportunities in more detail with one of our advisers.