Wright Johnston and Mackenzie Solicitors

Financing & Corporate Structures

Our Leisure & Hospitality team draws on our experience in all manner of corporate transaction to ensure that you put the right structure in place.

In the UK, there are four common forms of business structure which can be adopted by businesses:

  • sole trader;
  • conventional partnership (where you work with one or more partners in the business);
  • limited liability partnership (this provides you and your partners with limited liability); and
  • limited liability company.

The most common form of structure is a limited liability company, whereby a business is incorporated at Companies House in the UK.

One key reason for this is the protection of limited liability given to individual directors and shareholders – only the company’s assets are at risk in a limited liability company.

This means that if, for example there is a large claim against the company and the company cannot afford to pay this claim, only the company will become insolvent and your personal assets are not at risk.

Another key reason is that it is far easier to obtain investment in a limited liability company, whether through bank lending or third party investment.

The company can also be set up so that the relationship between the shareholders is clearly defined and to protect you in certain situations which may arise in the future, for example a key shareholder falls seriously ill or dies or where you wish to sell the business.

At WJM we can help you choose the business structure which is most appropriate for you and your business.

We can incorporate a limited liability company for you and ensure it is structured to reflect your needs and wishes and also protects you and your business in the future.

We also have significant experience and expertise in obtaining and advising on third party investment and bank lending to allow you to grow your business and would be happy to assist you with this.