Start your UK business the right way

Legal structure: Individual trading in their own name, not a separate legal entity; the business and the owner are legally the same.
Owners / “shareholders”: Single owner who controls all decisions and keeps all post‑tax profits; no shareholders or members.
Liability: Unlimited personal liability – business debts and claims can be enforced against personal assets.
Compliance: Simple setup with HMRC self‑assessment registration, light ongoing admin compared with companies.
Tax: Profits taxed as personal income (Income Tax and National Insurance) rather than Corporation Tax.
Capital requirements: No minimum capital; funded personally or via business finance in the owner’s name.
Suitability & flexibility: Best for freelancers, consultants and early‑stage micro‑businesses wanting low cost and minimal compliance but willing to accept personal risk.

Legal structure: Two or more individuals or entities carrying on business together with a view to profit; typically not a separate legal entity in its own right.
Owners / partners: Partners jointly own and manage the business, sharing profits in agreed proportions.
Liability: Partners usually have joint and several unlimited liability for partnership debts and obligations.
Compliance: No Companies House registration; partnership registration with HMRC and partnership tax return required.
Tax: Profits are allocated to partners and taxed as their personal or corporate income (transparent tax treatment).
Capital requirements: No statutory minimum; partners contribute capital as agreed in the partnership agreement.
Suitability & flexibility: Works for small professional or family businesses that value simplicity and shared control but accept higher personal risk.

Legal structure: Registered partnership with at least one general partner and one limited partner; LP itself is a legal arrangement recognised at Companies House.
Owners / partners: General partners manage the business; limited partners usually contribute capital only and do not take part in management.
Liability: General partners have unlimited liability; limited partners’ liability is capped at their agreed contribution if they do not participate in management.
Compliance: Must be registered as a limited partnership at Companies House; basic filing plus HMRC partnership obligations.
Tax: Generally tax transparent – profits are taxed on partners, not at entity level.
Capital requirements: No fixed statutory minimum, but limited partners typically commit defined capital.
Suitability & flexibility: Often used for investment, property and fund structures where investors want limited liability and a passive role.

Legal structure: Separate legal entity incorporated under the Companies Act, limited by shares; shareholders own the company and appoint directors to manage it.
Shareholders / directors: At least one shareholder and one director (can be the same person); shares can be held by individuals or corporate shareholders.
Liability: Shareholders’ liability is limited to the amount unpaid on their shares; personal assets are generally protected if the company fails.
Compliance: Must register with Companies House, maintain statutory registers, file annual accounts and a confirmation statement; corporation tax returns filed with HMRC.
Tax: Profits subject to UK Corporation Tax at company level; directors and shareholders taxed on salaries and dividends respectively.
Capital requirements: No minimum share capital requirement; companies can be formed with as little as one share (often £1 nominal).
Suitability & flexibility: The default structure for UK startups and SMEs, attractive to investors, scalable, and compatible with equity funding, option schemes and external investment rounds.

Legal structure: Separate legal entity limited by guarantee rather than shares; members guarantee a nominal amount instead of holding share capital.
Members: No shareholders; members act as guarantors and decision‑makers, not profit‑seeking owners.
Liability: Members’ liability is limited to their guarantee amount (often a small fixed sum) if the company is wound up.
Compliance: Incorporated at Companies House with similar filing, reporting and governance obligations to other private companies.
Tax: Subject to Corporation Tax unless eligible for charitable or other exemptions; treatment depends on activities and charitable status.
Capital requirements: No share capital required; funded by grants, membership fees, donations or trading income.
Suitability & flexibility: Ideal for non‑profits, clubs, associations and social enterprises that reinvest surpluses rather than distributing profits.

Legal structure: Separate legal entity limited by shares, permitted to offer shares to the public and (if listed) trade on a stock exchange.
Shareholders / directors: Must have at least two directors and meet statutory governance standards; ownership can be widely held across public investors and institutions.
Liability: Shareholders’ liability limited to paid or unpaid amounts on their shares, similar to a private limited company.
Compliance: Stricter Companies House filing, audit and disclosure standards; listed PLCs must also comply with market and listing rules.
Tax: Profits taxed under Corporation Tax; dividends and remuneration taxed at shareholder/employee level.
Capital requirements: Must have a minimum allotted share capital of at least £50,000 before registration as a PLC.
Suitability & flexibility: Designed for larger, growth‑stage and mature businesses needing access to public capital markets and willing to accept higher regulatory and governance burdens.

Legal structure: Hybrid between a company and a partnership, incorporated as a separate legal entity under the Limited Liability Partnerships Act.
Members: Minimum of two members, with at least two designated members responsible for compliance; members can be individuals or corporate bodies.
Liability: Members enjoy limited liability, generally limited to their capital contributions or agreed guarantees, similar to company shareholders.
Compliance: Must register with Companies House, file annual accounts and confirmation statement, and comply with LLP filing rules; a partnership tax return is submitted to HMRC.
Tax: Typically tax transparent – profits taxed on members personally or corporately rather than at LLP level.
Capital requirements: No statutory minimum capital; contributions and profit share are governed by the LLP agreement.
Suitability & flexibility: Favoured by professional services firms, joint ventures and international structures that want partnership‑style flexibility with corporate‑style limited liability.

Legal structure: Special form of company (limited by shares or by guarantee) created for social enterprises with an asset lock to protect community purpose.
Members / shareholders: Can have shareholders or members depending on form; investors’ rights are restricted to ensure community benefit is prioritised.
Liability: Liability is limited (by shares or guarantee) in the same way as equivalent standard companies.
Compliance: Must be incorporated at Companies House and authorised by the CIC Regulator; subject to standard company filings plus a community interest report.
Tax: Generally taxed like other companies (Corporation Tax), but may access grant funding, social investment and, where charitable, additional reliefs.
Capital requirements: No special minimum capital beyond ordinary company rules; can raise capital from social investors within CIC constraints.
Suitability & flexibility: Ideal for mission‑driven and impact‑focused ventures seeking a clear “social enterprise” badge while retaining a corporate structure.