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I am a Sign Writer. What business structure should I choose?

Are you looking to start up a signwriting business, or expand your already existing sign writing business? If so, it is imperative that you take the time to consider which business structure is best for you. Choosing a business structure is one of the most important decisions you will make during the formation of your signwriting business, as it will define the way it operates throughout its entire existence. Additionally, there is a litany of choices available to you, with each choice having its own positive and negative aspects. Unfortunately, understanding the legal implications associated with each business structure can be tough without prior legal experience. It is advisable that you seek legal advice at some point during the process.

Should I choose a company structure for my signwriting business?

The company business structure is the most common business structure chosen today, predominately due to the financial protection it provides to business owners. By creating a company, you are essentially creating a separate legal entity for your business, entirely separated from you. Clearly, such a structure would provide you with much less control over your signwriting business. That said, it would also remove the personal financial liability you would incur if you were to choose a partnership or sole trader as your business structure.

The reason that a company business structure is so prevalent in this day and age is that it is separated entirely from you, the business owner. This means that any financial deals entered into by you, on behalf of the company, will be payable by the company only. As a result, your personal finances are completely protected. Also, if you chose the company business structure, you would have much greater freedom in relation to either selling or passing on control of your business. Once again, this is because a company is a separate legal entity, so it does not necessarily matter who the director is, only that there is a director.

Unfortunately, all this freedom does come at a cost, quite literally. Setting up a company business structure for your signwriting business is the most expensive option available to you. Also, you will be required to appoint a director who can incur fines or be imprisoned unless he or she complies with certain statutory criteria. You will also be required to file annual returns and have your taxes scrutinized.

The short answer to this question is no; you do not need prior legal experience to choose a business structure for your signwriting business. It is crucial that you have a thorough understanding of all the different business structures available to you, as every situation is different, and only you can decide which one will work best for you. As seen above, each business structure has its own positive and negative aspects, however, not all of these will affect every business owner in the same way.

However, once you have gained a thorough understanding of these structures, it is certainly advisable that you seek legal guidance. If you choose a company structure, for example, you will be required to comply with rigorous legislation. Once you have decided on a shortlist of structures, you should seek the assistance of a legal professional. If you would like to see a list of all the structures available to you, please click here.

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Conclusion

If you are looking to start you own signwriting business or expand your already existing sign writing business, it is imperative that you take the time to consider which business structure is best for you. An example of a business structure that could work in your situation is that of a company. However, each business owner is in a unique position, so there is no clear right or wrong answer in any situation. Once you understand how each structure will affect your business, you should seek the advice of a legal professional to ensure that you are aware of the legal costs associated with any decision you will make. Finally, if you have any further questions regarding what business structure to choose for your business, please call LegalVision for a fixed-fee quote.

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Adi Snir

Adi Snir

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