Partnerships, Companies and Business Law

Frequently Asked Questions


Why should I set up a business?

While setting up a business is not necessarily for everyone, it can have some benefits. One advantage is that it can make the process of applying for, or transferring, a licence more straightforward (more information about this is given in the licensing section of this website). Companies also offer the benefit of limited liability protection, meaning that an owner-manager is not automatically liable for the obligations of his business.


What are the pros and cons of a company compared to a partnership?

This can be a difficult situation to resolve. Partnerships tend to be more informal, and are taxed in a way that is closer to individual taxation. Companies are more regulated (and, in particular, need certain paperwork to be filed and kept up to date at Companies House), but offer the benefit of limited liability. Companies are also taxed differently from individuals.


What is involved in setting up a business?

Normally, some kind of constitutional agreement (a partnership agreement if a partnership, and Articles of Association or a shareholder agreement for companies) will be required. What goes into these papers depends upon the issues that you think need addressed. A constitutional document could be short and simple, dealing only with the basics required to create a valid and legal business, or it could go into more detail about how the relationship between partners in the business will operate.


How long does it take to set up a business?

Taxi Legal’s experts have considerable experience in setting up all types of business. Normally, we would hope to have a business up and running within a week from your initial instructions.