A NEW guide to help small businesses understand the complexities of legal status has been launched by Barclays Bank.

Marking the start of its Efficient Business campaign, the guide explains the pros and cons of opting to take the public limited company route.

It was a decision that was made by 377,000 businesses last year, more than double the number of firms to do it in 2001 and in most cases the major attraction was likely to have been improved tax breaks.

Recently announced changes in taxation for limited companies may have made more than a few wonder if they made the right decision.

The guide is available from all Barclays branches or by calling 0800 515462.

But Making The Most Of Your Business Status aims to provide all the necessary information on tax, legal and financial requirements and the different stages of becoming incorporated.

Alison Hopkins, managing director of small business banking at Barclays said: "The ins and outs of considering legal status can be quite complex. Our guide explains in plain English the options available and provides the sources of information needed to help make the right decision.

"While we don't anticipate that the recent changes announced by the Chancellor will lead to a dramatic change in the number of businesses who wish to incorporate, it is vital that business owners are clear of where they now stand and what their legal status really means."