Legal Entity

A recognised business structure with legal rights and responsibilities distinct from its owners, such as a sole trader, limited company, partnership, or LLC.

The legal entity structure you choose determines your personal liability, tax obligations, access to investment, and the formality of your financial reporting. Getting it right from the start prevents expensive restructuring later.

A founder initially operates as a sole trader for simplicity. As revenue grows and she takes on clients with contract risk, she registers a limited company to separate her personal finances from business liabilities and reduce personal risk.