Business StructuresOne of the most common questions I get asked in new client meetings is how should I structure my business?  This is not a straightforward question, and I inevitably have to ask several follow up questions to find out the plans for the business. Below is a summary of the type of business structures that you may wish to consider and some of the advantages and disadvantages.

Sole Trader

This is the most simple business structure. The business owner registers with HMRC that they are running a sole trader business, and thus are self-employed. There is then an obligation on the business owner to file a personal tax return every year. Profits are subject to income tax and Class 4 National Insurance, a flat rate of Class 2 National Insurance in most cases is also payable.