Business
Structuring

Business structuring refers to the process of choosing a legal and organisational framework for your business. This structure defines how your business operates in terms of legal, financial, and operational responsibilities. The structure you choose affects everything from daily operations, how profits are distributed, tax obligations, to the level of personal liability you face as a business owner.

Business structuring is really important for several reasons:

• Liability: It determines the extent of personal liability you as an owner would face in the event of debt or legal actions against your business.T
• axation: Different structures are taxed in various ways, and the right structure can significantly reduce your tax liabilities.
• Investment and financing: Certain structures are more attractive to investors and lenders. Structuring your business appropriately can facilitate easier access to capital and funding.
• Future growth: A well-thought-out business structure can support easier expansion and growth, whereas a poorly chosen structure might limit future opportunities.

The most common business structures include:

• Sole Proprietorship: Owned and run by one person where there is no legal distinction between the owner and the business.
• Partnership: Owned by two or more people who share responsibilities, profits, and liabilities.
• Company: A legal entity separate from its owners, offering limited liability but with more complex and stringent regulatory requirements.
• Trust: A trust is a structure where a trustee – which can be an individual or a company – holds your business for the benefit of its beneficiaries. The trustee runs the business and is responsible for all income and losses.

Each structure has its own advantages and disadvantages depending on the specific needs and goals of your business.

Choosing the right business structure involves considering several factors:

• Liability: How much personal legal liability are you willing to assume?
• Taxes: What tax implications will different structures have for your business?
• Cost and formality: Some structures are inexpensive and easy to form but offer less protection and benefits, while others may be more costly and complex but offer greater benefits.
• Future needs: Consider not only your current situation but also your long-term goals and how each structure might help or hinder those plans.
• Control: How much control do you want to retain over your business operations?


It’s often beneficial to consult with business advisors, accountants, and legal professionals to analyse your specific circumstances and objectives.

Yes, professional assistance is generally recommended when structuring a business. Business advisors, accountants, and lawyers can provide really significant insights and guide you based on current laws and your specific business needs. We can help ensure that your structure optimally supports your business goals, minimises tax liabilities, and reduces the risk of personal liability. As well as that, we can help navigate the paperwork and filings required to legally establish and maintain the chosen structure, ensuring compliance and protecting your interests.