Some people assume that everyone who is in ‘business’ runs a company, but this is not correct. There are actually four quite distinct common forms of business structure in the UK: a conventional partnership (where the individual works with one or more partners in the business); a limited liability partnership – LLP – (this provides the individual and their partners with the protection of limited liability, just as with a company); or Someone running their own business MIGHT be running a limited company, but often they are not. There are many practical, administrative and tax differences between businesses that are run as limited companies and those that are not. Many people mistakenly run their business through a limited company when this is not really the most suitable or convenient option. Others only ‘incorporated’ their business into a limited company because there seemed to be some tax savings. These will vary each year as the relevant ta...
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