What legal structure should I choose when setting up a business?

The appropriate structure depends on how the business will be owned, managed and financed. Common options include operating as a sole trader, partnership, limited liability partnership or limited company. Legal advice can help ensure the structure reflects the commercial aims of the business and reduces avoidable risk from the outset.

Do I need a shareholder agreement when setting up a company?

A shareholder agreement is often advisable where a company has more than one owner. It can set out how decisions are made, what happens if someone wants to leave, and how disputes between shareholders will be managed. This can be particularly important in owner-managed businesses, family businesses and businesses involving friends or professional partners.

What legal documents are needed when starting a business?

The documents required depend on the structure and activities of the business. They may include company documents, shareholder or partnership agreements, commercial contracts, terms of business, employment documents and supplier agreements. Putting these documents in place early can reduce uncertainty and help avoid disputes later.

What is the difference between a company and a partnership?

A company is a separate legal entity from its owners. A partnership is a business relationship between individuals or entities who carry on business together, usually with different legal and financial consequences. The right choice depends on liability, tax, control, investment plans and the relationship between the people involved.

When should I get legal advice about business structure?

It is usually best to seek legal advice before committing to a structure, taking on investors, entering major contracts or bringing in business partners. Early advice can help avoid arrangements that are difficult or expensive to unwind later.

Legal Services › Business and Commercial Law › Setting up and Structuring a Business

SETTING UP &
STRUCTURING A BUSINESS

Practical legal foundations for building a business that works

What this work involves

Setting up or restructuring a business is not a single step. It is a series of decisions that shape ownership, control and risk over time.

This may include:

Choosing an appropriate structure, such as a sole trader, partnership or limited company
Setting up companies and advising on directors’ duties and responsibilities
Establishing shareholdings and ownership arrangements
Preparing shareholder or partnership agreements
Defining decision-making processes and levels of control
Structuring roles between founders, investors or family members
Protecting personal assets where possible
Planning ahead for future investment or sale

In more established businesses, it can also involve:

Reviewing and refining existing structures
Addressing uncertainty around ownership or control
Supporting changes in roles between founders or directors
Preparing for external investment or growth
Ensuring the legal structure reflects how the business now operates

Where appropriate, we work alongside accountants or tax advisers to ensure the structure is aligned both legally and financially.

Getting the structure right

Many businesses begin informally. That can work in the short term, but over time it often creates uncertainty.

We are often asked to advise where:

Agreements between owners were never clearly documented
Shareholdings do not reflect contributions or expectations
Decision-making has become unclear or contested
A new partner, investor or family member is becoming involved
The business is preparing for sale, succession or transition

Putting the right structure in place at the outset is ideal. Revisiting it later is often just as important.

Where business and personal interests overlap

For many clients, business decisions are closely tied to personal and family considerations.

This may include:

Family-run businesses or intergenerational involvement
Informal financial contributions or loans
Spouses or partners with differing levels of involvement
Questions around succession or longer-term planning

Our approach reflects this. We look not only at the legal structure, but at how the business fits into the wider picture.

Our approach

We focus on creating structures that are clear, workable and proportionate to the business.

This means:

Avoiding unnecessary complexity
Identifying risks before they become problems
Documenting key relationships and expectations
Allowing flexibility for growth and change
Supporting constructive working relationships between owners

Where issues arise later, a well-considered structure often makes them easier to resolve.

Discussing your situation

An initial conversation is a way to understand how your business is currently structured, what you are trying to achieve, and whether changes would be helpful.

Some clients come to us at the very beginning. Others come at a point where the structure no longer supports how the business operates or where it is heading. Both are entirely normal starting points.

Clear Prices. No Surprises.

We adopt time billing, fixed fees, retainers and subscriptions. In some circumstances, clients pay over time or at the conclusion of their matter.

Make an

Initial Enquiry

A first conversation can help clarify your position and whether any changes to your business structure would be beneficial.

Related Services:

When setting up or structuring a business, it is often helpful to consider how these related areas will shape your arrangements over time:

› Shareholders, directors and business relationships
› Commercial contracts and agreements
› Buying or selling a business
› Commercial disputes and risk management
› Employees and employment issues

Common questions about structuring a business

Do I need a formal structure when starting a business?

Not always at the very beginning, but as soon as a business involves more than one person, financial risk, or plans for growth, having a clear legal structure becomes important. It helps avoid uncertainty and reduces the likelihood of disputes later on.

Do I need legal advice if I already have an accountant?

Accountants and legal advisers often look at different aspects of the same structure. Legal advice focuses on ownership, control and risk, and how relationships within the business are documented. The two perspectives are usually complementary.

Can I change the structure of my business later on?

Yes. Many businesses evolve over time and need their structure reviewed or adjusted. Doing so at the right moment can help support growth, bring clarity, or prepare for investment or sale.

When should I put a shareholder or partnership agreement in place?

Ideally at the outset. In practice, many businesses only address this once questions arise about ownership, roles or decision-making. Putting an agreement in place at that stage can still be very valuable.

What is the difference between a sole trader, partnership and limited company?

Each structure carries different implications for liability, tax and control. The right choice depends on how the business will operate, the level of risk involved, and what you are planning for in the future.

SETTING UP & STRUCTURING A BUSINESS