Legal Entity - When creating a business plan template for a small business, the Legal Plan is extremely important.
As mentioned previously there are a number of things you will need to consider when deciding on the structure of your business.
Look at the structures available to you as a small business. Whether it be sole trader, partnership or company consider the following implications:
- Tax – look at the tax system within your country for the above 3 entities, does one give you more of an advantage or flexibility over the other?
- Make sure that you are aware of all your obligations for tax, and that you know exactly what is required of you. Don’t forget, knowing the taxation system can work to your advantage and will often help prevent you being penalised for getting it wrong.
- What are your liabilities for each entity?
- Look at how you would need to set up your entity – what is the legal process for doing so. Do you need to register the name, can you use that name or has someone else already using it.
- Look at the advantages and disadvantages for each entity in relation to your business.
