MEPX
Chapter 6 of 10All chapters
  1. 1The business model
  2. 2Customers
  3. 3The money side
  4. 4Competition and advantage
  5. 5Operations
  6. 6Legal structure
  7. 7People
  8. 8Getting customers
  9. 9Risk and resilience
  10. 10Growing

Chapter 6 of 10

Legal structure

How the business exists on paper.

The choices

Sole trader, partnership and limited company are the usual options. They differ in personal liability, tax treatment, admin burden and how easily investment can be taken.

  • A limited company separates personal assets from business debts, mostly.
  • Specifics vary by country and change; check current official guidance.

Contracts

Written terms, clear scope, payment dates and what happens on failure. Most disputes come from things everyone assumed and nobody wrote down.