As you may have read in just about every news website, paper and social media channel there is a shortage of HGV drivers that have led to disruptions in the distribution of food, groceries and fuel resulting in no chicken at everyone’s favourite peri peri chicken restaurant, empty shelves and long queues at petrol stations across the UK.
Naturally, we’ve seen an increase of new transport businesses springing up all over the UK to fill this shortfall, so we thought we’d bring to light an important consideration that both new and existing transport business owners need to consider.
So without further ado… whether you’re already own a transport business or are looking to start one, you need to consider if your business legal structure is appropriate.
For example, there are many sole trader businesses across the UK, and whilst there’s slightly less administrative work, there is no limited liability. What this means is that if the business incurs debt, your assets, such as your car, house, or any other personal valuables you own could be seized to pay the debt.
A private limited company offers business owners limited liability. This means if the business incurs debt, your personal belongings and assets are safe and won’t be seized to pay the debt because a private limited company is a separate legal entity to the owner.
Limited liability is not the only difference between a sole trader and a private limited company, there are tax efficiencies to consider, administrative work as well as legal protection of your business name! You can see the full list of advantages and disadvantages of both types of business legal structure in our ‘Limited Company Vs Sole Trader: Advantages and Disadvantages’ article here.
If you’re already well versed in the different types of legal structures for your business and have decided that a private limited company is right for you, we can help. We can register your business as a private limited company for just £9.99 and with our expert customer support team on hand, we’re here to help you every step of the way. Click here to see if your business name is available to register as a limited company today!
Having a limited company can also help you acquire capital if needed. If you’re just starting up or considering expanding, you might need funds to pay for property, assets, equipment, license’s or even to keep a healthy cash flow. Regardless of your legal structure, we can support you with acquiring the capital you need.
Of course, considering the legal structure isn’t the only thing you need to consider when starting a transport business. You need to make sure you have the appropriate license, the correct insurance policies, tax and MOT, and much more. The government’s website has a comprehensive list of everything you’d need to be aware of that you can find here.