AMA Accountants are experienced and well versed with all kinds of business structures and can advise you on all financial matters such as accountancy, taxation, secretarial services and also help you change the business structure. Below are the most commonly used business structures in the UK:
Sole trader businesses are owned and run by one person. Such a business is easily set up and the business accounts are confidential. However, sole traders are personally responsible for all business debts and liabilities.
AMA accountants prepare sole trader accounts annually and complete the sole trader’s self-assessment tax return. Sole traders pay income tax and national insurance on profits made, not on funds withdrawn from the business, and may need to register for VAT.
Partnership involves two or more people owning and running a business and sharing the profits in an agreed manner. The partners are personally responsible for all business liabilities and each may be responsible for the whole of any debt (other than income tax) if the other defaults.
Accounting records are similar to those of a sole trader and are confidential. Partners are also taxed in a similar way to sole traders. AMA accountants prepare partnership accounts annually and complete the partners’ self-assessment tax return. Partners pay income tax and national insurance on profits made based on their share in the partnership, not on funds withdrawn from the business, and may need to register for VAT.
Limited liability partnership (LLP):
LLPs exist as a separate legal entities, which means the liability of partners is limited in most cases. Like a limited company the LLP’s accounts must be filed at Companies House and its financial statements made available to the public but the partners’ tax treatment follows that of a traditional partnership.
AMA Accountants provides a wide range of accountancy services for LLPs just like limited companies. Please visit our accountancy section for further information.
Limited company exist as an independent legal entity, separate from the people who own it. Directors and shareholders are not personally responsible for the company’s debts, except in exceptional circumstances.
The company must register with, and submit annual accounts to, Companies House, along with an annual return to Companies House, updating certain company details. Limited companies pay corporation tax, while their employees pay income tax and National Insurance contributions.
AMA Accountants provides a wide range of accountancy services for limited companies. Please visit our accountancy section for further information.