Is it best to set up a limited company from?

Essentially, you have three options when deciding how to operate your franchise business.  If you are a sole trader then there are no formalities in starting to trade. If more than one of you wants to operate the business, then it may be that you will operate as a partnership.  In terms of formalities, the most complex is to set up a limited company. Either your solicitor, accountant or company formation agents can incorporate a company for you. Each company must have at least one shareholder and one director. The downside is that you have to prepare annual accounts as well as comply with other annual formalities.  In relation to your liabilities to the franchisor, it doesn’t matter what structure you adopt because, in all cases, the individuals who are responsible for the business will be personally liable, although limited liability companies do protect the individuals involved when dealing with third parties such as suppliers and customers.  Ultimately, most people make a decision on structure based on the tax position. This is complex and is really an area where you need some good accountancy advice.