Introduction to this document
Why form a company?
Often, a business is incorporated because its professional advisor has recommended it as the most tax-efficient way of doing business. But are there other benefits, and are there any downsides?
Taking the plunge
Many businesses start off being run in a sole trader or partnership format. Then, as business becomes more established, the owners may be advised by their accountant or tax advisor to incorporate for tax reasons. This checklist runs through the other benefits of incorporating, as well as giving a heads-up about the drawbacks. If you decide to incorporate your business or set up a fresh new company ready to trade, see our Forming a Company checklist for the lowdown on incorporation methods.
Other options
Although a company limited by shares is the most common form of company, it’s not the only option - see our Business Formats summary for more.
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27 Jan 2023