This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Decisions, decisions! Incorporation vs Unincorporated

By Jennifer Adams, April 2021

Jennifer Adams considers the advantages and disadvantages of incorporation. 

Anyone starting a new business needs to decide which legal structure is best suited to the particular type of business being created, taking into consideration all the issues involved for each type, including the potential liability for any future business debts and the tax implications of their chosen structure. 

Growing the business 

It is invariably the case that a sole trader or partnership commences in business and the business grows such that the matter of incorporation needs to be considered. Although the decision to incorporate should be for commercial reasons rather than tax savings, any tax savings that may result need to be factored into the decision.  

When a limited company is formed a new entity is created. Legally, this entity is separate from all other individuals,

This is one of our 2006 Premium articles

To see this article in full and unlock access to our complete library of 2006 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!