When you’re starting or growing a business, one of the biggest decisions you’ll make is how to structure it. The structure you choose affects everything: how much tax you pay, how easy it is to grow, and how well your personal assets are protected if something goes wrong.

At Owen Culliney Law, we often see business owners leave these decisions until later. But getting the structure right from the beginning can save you stress, money, and risk down the line.

Let’s look at some of the most common structures and what they mean for your business.

Sole trader

This is the simplest option. You and the business are legally the same. You keep full control, the setup is low-cost, and you make all the decisions.

The downside? You’re personally responsible for any debts or claims against the business. If something goes wrong, your house, savings, or other personal assets could be at risk. This makes a sole trader structure better suited for small, low-risk ventures.

Partnership

A partnership involves two or more people running a business together. It’s still relatively easy to set up, and it allows you to pool resources and skills.

But partners share liability. If one partner takes on a debt or makes a mistake, the others may still be personally responsible. Clear legal agreements are essential for setting out roles, responsibilities, and how profits (or losses) are divided.

Company

Forming a limited liability company creates a legal entity separate from you personally. This means that, in most situations, your personal assets are protected if the company runs into debt or legal issues - your liability is “limited” to what you invested into the company.

For growing businesses, companies often make sense. They add credibility, make it easier to attract investors, and allow for a more straightforward transfer of ownership or succession planning. They can also offer more flexibility with how income is paid and taxed.

The trade-off is more compliance: you’ll need to meet reporting obligations and keep company records up to date.

Trusts

While trusts are not a trading structure on their own, they can be used alongside a company or partnership to protect assets and plan for the future. For example, a family trust might hold shares in a company. This setup can protect wealth from business risks and provide a way to pass assets smoothly to the next generation.

Trusts add complexity, but for many business owners they create an extra layer of long-term security.

Why structure matters

Choosing the right structure is about balancing growth opportunities with protection. A company or trust structure may cost more to set up and maintain, but they can shield your personal assets and make it easier to scale without taking on unnecessary risk.

The wrong choice, on the other hand, might leave you exposed or make it harder to attract investors, enter contracts, or sell the business later.

Getting it right from the start

There’s no “one size fits all.” The best structure depends on your type of business, growth plans, tolerance for risk, and personal situation. Often, the right approach is a combination. For example, operating through a company with shares held by a trust.

At Owen Culliney Law, we help business owners weigh up the options, set up the right structure, and put in place the legal protections they need to grow with confidence.