Choosing a business structure
How you trade — as a sole trader, a partnership or a limited company — affects your tax, your personal liability, your admin and how others see your business.
- Sole trader: simplest to run, but you and the business are legally the same
- Partnership or LLP: shared ownership, with an LLP adding limited liability
- Limited company: a separate legal entity, often more tax-efficient at higher profits, with more reporting
- The right answer depends on profit levels, risk, plans and personal circumstances
How MMC helps: we talk it through in plain English, compare the real numbers for your situation, and handle the set-up or any later change of structure.
Keeping good records
Good records aren't just a legal requirement — they're how you understand your business and avoid paying more tax than you need to.
- Keep records of all income and expenditure, with supporting documents
- Retention periods vary, but several years is the norm
- The tax system is moving steadily towards digital record keeping
- Cloud accounting software makes this easier and gives you live figures
How MMC helps: we set you up on software that suits your business, train you to use it, and keep your bookkeeping accurate so the figures are always there when you need them.
Managing cash flow
Profitable businesses still fail if they run out of cash. Cash flow — the timing of money in and out — deserves as much attention as profit.
- Profit and cash are not the same: a sale isn't cash until it's paid
- A simple forecast shows pinch points before they arrive
- Prompt invoicing and firm credit control protect your cash
- Set money aside for tax so bills never catch you out
How MMC helps: we build forecasts, advise on credit control and reserves, and act as a sounding board so you can make decisions with confidence.
These factsheets are general guidance, not advice, and rates and thresholds change. For current figures see our tax rates & allowances page, and please contact us for advice tailored to your circumstances.
