Business Structure Review

If you're starting a business or thinking about changing your business structure, choosing the right structure matters—and getting it wrong can affect your tax, liability, and business growth. Limited companies provide limited liability protection for owners' personal assets, meaning personal assets are protected if the company has financial problems, while sole traders have unlimited liability (gov.uk set up business). Tax treatment differs: limited companies pay corporation tax on profits (currently 19% for small companies, 25% for larger companies from April 2023), while sole traders pay income tax and National Insurance on profits (income tax rates 20%, 40%, 45% depending on income, plus Class 2 and Class 4 National Insurance). The decision between sole trader and limited company depends on factors including profit levels, personal liability concerns, tax efficiency, administrative capacity, and business growth plans.

The problem is most people don't understand the differences between business structures or how to choose the right one for their situation. They don't understand tax implications, don't realise liability differences, don't know when to change structure, or struggle to compare options. That causes problems—paying more tax than necessary, exposing personal assets to business risks, missing growth opportunities, choosing the wrong structure for their situation, and stress from trying to figure it out.

We handle business structure reviews for businesses across Kent: structure comparison (comparing sole trader vs limited company, including tax, liability, administration, and growth implications), tax analysis (analysing tax implications for each structure, including income tax vs corporation tax, National Insurance, and overall tax efficiency), liability assessment (assessing liability implications, including limited liability protection vs unlimited liability, and personal asset protection), administrative review (reviewing administrative requirements for each structure, including compliance obligations, record-keeping, and ongoing maintenance), growth planning (considering business growth plans and how structure affects growth, investment, and expansion opportunities), structure recommendation (providing a recommendation on the best structure for your specific situation, based on your circumstances and goals), and structure change support (helping you change business structure if needed, including sole trader to limited company conversion, and understanding implications of changes). Whether you're starting a business in Medway needing structure advice, a sole trader in Maidstone considering converting to limited company, or a business in Canterbury wanting a structure review, we'll handle your business structure review that works. No confusion, no wrong choices—just clear advice that helps you choose the right structure for your situation.

What this helps you do (fast)

• Understand your options — We'll compare sole trader vs limited company, explaining tax, liability, administration, and growth implications so you understand your options. Understanding options helps you make informed decisions.
• Choose the right structure — We'll provide a recommendation on the best structure for your specific situation, based on your circumstances, goals, and plans. Right structure optimises tax and liability.
• Save money on tax — We'll help you understand tax implications and choose a structure that's tax-efficient for your situation. Tax efficiency saves money.
• Protect your personal assets — We'll help you understand liability implications and choose a structure that protects your personal assets if appropriate. Asset protection reduces risk.
• Plan for growth — We'll consider your business growth plans and how structure affects growth, investment, and expansion opportunities. Growth planning supports business development.
• Make informed decisions — Having professional advice on business structure helps you make informed decisions based on your specific situation. Informed decisions prevent costly mistakes.

How it works

Step-by-step process for business structure review:

1. Discovery call — We chat about your business: whether you're starting a new business or reviewing an existing structure, what your current structure is (if existing), what your business does, what your profit levels are (or expected to be), what your growth plans are, what your concerns are (tax, liability, administration), and what you want to achieve. Understanding your situation helps us tailor advice.
2. Current structure assessment — We assess your current structure (if existing):
   • Structure identification — We identify your current business structure (sole trader, limited company, partnership, etc.).
   • Current compliance review — We review your current compliance obligations (tax returns, accounts, records) and how well you're meeting them.
   • Current tax analysis — We analyse your current tax situation (tax paid, tax efficiency, tax planning opportunities).
   • Current issues identification — We identify any issues or concerns with your current structure (tax inefficiency, liability exposure, administrative burden, growth limitations).
   Current structure assessment identifies starting point.
3. Structure comparison — We compare business structure options:
   • Sole trader analysis — We analyse sole trader structure (tax treatment—income tax and National Insurance, liability—unlimited liability, administration—self-assessment only, growth—single-person business, setup—simple, no registration required).
   • Limited company analysis — We analyse limited company structure (tax treatment—corporation tax, liability—limited liability, administration—annual accounts, confirmation statements, company records, corporation tax returns, growth—can have multiple directors and shareholders, setup—Companies House registration required).
   • Partnership analysis — We analyse partnership structure (if applicable, including general partnerships, limited partnerships, LLPs).
   • Comparison summary — We provide a comparison summary highlighting key differences, advantages, and disadvantages of each structure.
   Structure comparison helps you understand options.
4. Tax analysis — We analyse tax implications:
   • Sole trader tax — We calculate tax implications for sole trader structure (income tax at 20%, 40%, 45% depending on income, plus Class 2 National Insurance (£3.45 per week in 2024/25) and Class 4 National Insurance (9% on profits between £12,570-£50,270, 2% on profits above £50,270), personal allowances, and tax planning opportunities).
   • Limited company tax — We calculate tax implications for limited company structure (corporation tax at 19% for small companies (profits up to £50,000), 25% for larger companies (profits above £250,000), marginal relief for profits between £50,000-£250,000, plus income tax and National Insurance on salary/dividends taken from company, and tax planning opportunities).
   • Tax efficiency comparison — We compare tax efficiency between structures, showing which structure is more tax-efficient for your specific profit levels and circumstances.
   • Tax planning opportunities — We identify tax planning opportunities for each structure (salary vs dividends, tax-efficient extraction, pension contributions, etc.).
   Tax analysis shows tax implications clearly.
5. Liability assessment — We assess liability implications:
   • Sole trader liability — We explain sole trader liability (unlimited liability—personal assets are at risk if business has financial problems, personal liability for business debts, no separation between personal and business assets).
   • Limited company liability — We explain limited company liability (limited liability—personal assets are protected (subject to certain exceptions like personal guarantees), company is separate legal entity, personal assets separate from company assets).
   • Risk assessment — We assess your personal liability risk based on your business type, activities, and circumstances.
   • Asset protection — We assess how structure affects protection of your personal assets (home, savings, investments, etc.).
   Liability assessment shows liability implications clearly.
6. Administrative review — We review administrative requirements:
   • Sole trader administration — We review sole trader administration (self-assessment tax returns annually, simple record-keeping, no Companies House requirements, minimal compliance obligations).
   • Limited company administration — We review limited company administration (annual accounts filing with Companies House within 9 months of year end, confirmation statements at least once per year, company records maintenance—register of directors, shareholders, persons with significant control, corporation tax returns to HMRC, PAYE and VAT if applicable).
   • Administrative burden comparison — We compare administrative burden between structures, showing time, cost, and complexity differences.
   • Administrative capacity assessment — We assess your capacity to handle administrative requirements (time, expertise, resources, support available).
   Administrative review shows administrative implications clearly.
7. Growth planning — We consider growth implications:
   • Growth opportunities — We consider how structure affects growth opportunities (raising investment, taking on partners, expanding business, scaling operations).
   • Investment considerations — We consider how structure affects ability to raise investment (limited companies can have multiple shareholders, issue shares, attract investors, while sole traders are single-person businesses).
   • Partnership opportunities — We consider how structure affects ability to take on partners (limited companies can have multiple directors and shareholders, partnerships can have multiple partners).
   • Expansion planning — We consider how structure affects business expansion (hiring employees, opening new locations, diversifying activities).
   Growth planning shows growth implications clearly.
8. Structure recommendation — We provide a recommendation:
   • Recommendation rationale — We provide a clear recommendation on the best structure for your specific situation, explaining why this structure is best for you.
   • Key factors — We highlight key factors that influenced the recommendation (tax efficiency, liability protection, administrative capacity, growth plans).
   • Comparison summary — We provide a summary comparing recommended structure vs alternatives, showing advantages of recommended structure.
   • Next steps — We outline next steps if you want to implement the recommendation (company formation if converting to limited company, structure change process, compliance setup).
   Structure recommendation provides clear guidance.
9. Structure change support (if applicable) — We provide support if you want to change structure:
   • Change process — We explain the process for changing structure (e.g., sole trader to limited company conversion, including company formation, asset transfer, tax implications, compliance setup).
   • Change implications — We explain implications of changing structure (tax, liability, administration, timing, costs).
   • Change support — We provide support for structure changes (company formation, asset transfer, compliance setup, ongoing support).
   Structure change support helps you make changes smoothly.

We handle all aspects of business structure review, from initial assessment to structure recommendation and change support. The key is understanding your situation, comparing options clearly, analysing tax and liability implications, and providing a recommendation that's right for you.

Costs & timelines

Pricing factors:

• Review scope — Basic review (structure comparison, basic recommendation) vs. comprehensive review (detailed tax analysis, liability assessment, growth planning, structure recommendation, change support) affects scope and time.
• Business complexity — Simple businesses vs. complex businesses (multiple income streams, complex tax situations, partnership considerations) affects time.
• Change support — Review only vs. review plus structure change support (company formation, asset transfer, compliance setup) affects scope and cost.

Commonly reported ranges by local providers:

• Basic business structure review (structure comparison, basic recommendation): £150–£300 (includes structure comparison, basic tax analysis, structure recommendation, basic advice)
• Standard business structure review (comprehensive analysis, detailed recommendation): £300–£600 (includes comprehensive structure comparison, detailed tax analysis, liability assessment, administrative review, growth planning, structure recommendation, detailed advice)
• Comprehensive business structure review (full service, change support): £500–£1,000+ (includes comprehensive review, detailed analysis, structure recommendation, structure change support if needed—company formation, asset transfer, compliance setup)
• Structure change support (if needed): £200–£500+ (support for changing structure, e.g., sole trader to limited company conversion, including company formation, asset transfer, compliance setup)

Why business structure review costs what they do:

• Specialist knowledge — Understanding business structures, tax implications, liability implications, and compliance requirements requires specialist knowledge.
• Time and analysis — Comprehensive structure comparison, tax analysis, liability assessment, and recommendation require time and detailed analysis.
• Value provided — Business structure review helps you choose the right structure, optimise tax, protect assets, and plan for growth, providing substantial value.
• Risk management — Choosing the right structure protects you from tax inefficiency, liability exposure, and growth limitations.

Timeline: Basic structure review typically takes 1–2 weeks. Standard review typically takes 2–3 weeks. Comprehensive review typically takes 3–4 weeks. Structure change support (if needed) typically takes 4–6 weeks depending on complexity.

Payment: Typically invoiced on completion of review report, or in stages: initial assessment (on completion), detailed analysis (on completion), recommendation (on completion). Payment terms are typically 14–30 days.

No hidden fees. Our price includes structure comparison, tax analysis, liability assessment, administrative review, growth planning, and structure recommendation. Structure change support (if requested) is typically charged separately or included in comprehensive review packages.

Kent (UK) focus

For businesses in Kent, whether you're starting a business in Medway needing structure advice, a sole trader in Maidstone considering converting to limited company, or a business in Canterbury wanting a structure review, business structure review helps you choose the right structure for your situation. Many Kent businesses don't understand the differences between business structures or choose the wrong structure, leading to tax inefficiency, liability exposure, or missed growth opportunities. We help local businesses understand their options, compare structures clearly, analyse tax and liability implications, and choose the right structure for their circumstances. The decision between sole trader and limited company depends on factors including profit levels, personal liability concerns, tax efficiency, administrative capacity, and business growth plans.

Common Kent business structure scenarios:

• New businesses — Businesses just starting out, needing advice on choosing the right structure from the start.
• Sole traders considering conversion — Sole traders considering converting to limited company, needing advice on whether conversion makes sense and how to do it.
• Growing businesses — Growing businesses reviewing structure as they grow, needing advice on whether structure is still appropriate.
• Tax optimisation — Businesses wanting to optimise tax efficiency, needing advice on which structure is more tax-efficient for their situation.

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. Structure comparison, tax analysis, liability assessment, growth planning, structure recommendation—we'll handle your business structure review that helps you choose the right structure.

FAQs