I would like to start a marketing firm. What type of company should I form?

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Some friends and I are getting together to launch a marketing firm. Do you have any clue what company structure we should pursue for this project? Thanks in advance for your help!

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You could benefit from setting up a limited by shares company or an LLP, depending on how you want to structure the ownership and management of the business and remove profits.

By setting up a limited company, you can have multiple owners and directors, each of whom holds a certain stake in the business in relation to the amount of money and time they invest. You will be able to pay yourself tax efficiently by taking a salary and dividends. Shares in the business can be sold at a later date to raise capital.

Alternatively, a limited liability partnership (LLP) may be ideal if you would rather operate as a partnership structure with each partner taking profits from the business for the work they personally carry out. Each partner will be taxed as a self-employed individual, rather than receiving a salary and dividends.

Either option would work, so I would suggest taking a look at our guides on Limited by Share Companies and LLPs, and then discussing your options with an accountant or specialist business advisor.

10 months ago
 

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