TaxBanter Nov Special Topic: Choosing an appropriate business structure

Advice to a client about an appropriate structure in which to carry on a business will be based on the client’s 
specific circumstances, goals and aspirations and should take into account taxation as well as commercial 
considerations. The client’s concerns at the initial setting up phase may be with things like obtaining funding, 
keeping establishment and ongoing compliance costs down, limiting personal liability and the ability to minimise 
tax if things go well. This means that the structure which is appropriate at the early stages of the business may not 
be appropriate at a later stage in the life cycle of the business. The client’s business plan will therefore consider 
how the business structure will be changed as the business grows and expands.

This session will consider the typical business structures used to carry on a business including:

• Assessing their advantages and disadvantages in relation to:
  - establishing the structure
  - funding requirements
  - operating the structure 
  - getting money out
  - exiting the structure
• The tax treatment of income and losses of the entity
  the administrative and reporting obligations 
• Examples of structures that may be used to achieve different objectives