Legal Structure for Social Enterprises

A legal structure is the authorized business structure that an organisation takes. Things like the amount of tax that an organisation pays or the type of investment or grant that an organisation receives are determined by its legal structure.

Sometimes, selecting a legal structure is difficult. There are many different structures that social entrepreneurs can select and there is no legal definition for a social enterprise. In addition, each different legal structure has specific and complex rules.

Examples of legal structures for social enterprises include unincorporated association, partnership, trust, sole trader 1, company Ltd by shares , company Ltd by guarantee, community Interest Company( limited by shares), Community Interest Company (limited by guarantee), charitable incorporated organisation, limited liability partnership, community benefit society, and co-operative society.

As you can see, legal structures are many. Selecting a legal structure is not easy. Therefore, it is advisable to seek out an advice before making a decision. There are many resources available online and through support organizations and umbrella bodies. Decide where you want to go and have all the questions you need to ask before you pay for advice.



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