Legal and tax implications in choosing an ebusiness structure

When you decide to start up an e-business project, its legal structure plays an important role. If you are starting up a new company, then issues have to be addressed, including location of the business’ premises and its legal form. If there is an existing company or group of companies, then the question arises as to whether it is best to set up a new company for the e-business project or better to continue working with the existing structure. Either choice has significant tax consequences.

In choosing the form of doing business, the goals of the entrepreneurs will be important: do they want to limit their liability or retain control; do they want to float the company on the stock market; and do (foreign) tax elements play a role? All these aspects impact on the choice amongst a public limited liability company, a private limited liability company or a partnership limited by shares.