Sole | Partnership | Ltd | LLP | CIC Setting up as a sole trader If you operate as a sole trader, you have complete control over how your business is run,

Slides:



Advertisements
Similar presentations
1. 2a Business ownership Part a Business ownership Part 1 UK business ownership This means:  They are owned by private individuals  These individuals.
Advertisements

Chapter 4.3 Choose the legal form of your Business
Forms of Business.
Lecturer: Rowin Gurusami.  One-person operation  Provide their own capital  Contract in their own name  Personal liability for all the debts of business.
Ch 7: Type of Business Ownership
Choosing the Best Business Structure. Choosing the Legal Structure of Your Business Sole Proprietorship Partnership Limited Liability Company Corporation.
Choosing the Best Business Structure
Corporation A legal entity that is separate and distinct from its owners. Corporations enjoy most of the rights and responsibilities that an individual.
The American Private Enterprise System. Part VI Investor- Owned Corporations and Limited Liability Companies.
Starting a Business in Ireland Legal, Accounting, Tax and Banking Issues.
Stock Market Game.
Unit 1.2 – Types of Organizations
Starter  Who own these companies? How does ownership work? Sole Trader, Partnership, Limited Company, Co-operative.
Presenter: Christopher M. Pacheco, Esq. Shareholder Lastrapes, Spangler & Pacheco, P.A.
Types of organisation.
Choosing correct legal structure is a VERY important decision – influences how business operates. We examine… SOLE TRADER SOLE TRADER PARTNERSHIPS PARTNERSHIPS.
 Business is owned and run by one individual  Nearly 76% of all businesses  Owner receives all of its profits and bear all of its losses.
Ownership. UK business ownership This means: They are owned by private individuals These individuals risk their own money The owners’ reward is the profit.
Electronic Flashcards  Why might a person want to own their own business?
Choosing a legal structure. What this topic is all about There are several choices of business structure for a start-up Setting up a new business is a.
Business Entities Dr. John Abraham Professor University of Texas Pan American.
Chapter Forms of Ownership of Small Businesses 3.
Business ownership Types of business ownership / responsibilities, investment & profits.
Ch. 5-2 Forms of Ownership.
Entrepreneurship: Owning Your Own Business
Tax and Legal Issues. Two Big Issues Liability Issues Tax Issues.
Business Practice Models Minnesota Psychological Association September 18, 2015 Denise Kautzer, MA, LPCC, CPA
By Gustavo Lucio.  This type of ownership is for people who want to make all of their business decisions independently.  This type of ownership has.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 5 SLIDE Forms of Business Ownership 5 C H A P T E R Economic.
Pauline Weetman, Financial and Management Accounting, 5 th edition © Pearson Education 2011 Slide 1.1 Chapter 1 Who needs accounting?
Nursery Management Understanding and Managing Finance
Level 1 Business Studies
IGCSE Business Studies Types of Business Organisation.
Types of business entities
Sole traders and partnerships
BUSS1.7 Choosing the right legal structure
Select a Type of Business Ownership Section 2. An Existing Business Advantages of an Existing Business –_________ has customer base, suppliers, and producers.
 Sole Proprietorship  Partnership  Corporation S Corporation.
BUSINESS FORMATION CHAPTER 9. What is Business Formation ? What is the legal formation of a business? Why the legal business formation is important?
MIXED ECONOMY. A market economy primarily based on private enterprise where the government, however, plays an important role in regulating the system.
Legal Entities. 1. Sole Proprietorship 2. Corporation 3. Limited Liability Company (LLC)
Business Ownership in the Private Sector
Types of Business Ownership Sole Proprietorships Partnerships Corporations.
What is the link?.
213 Liability AS Edexcel New Specification 2015 Business
Ownership of Swaledale Cheese Company SCC are a Private Limited Company (Ltd) Owners (now called shareholders) have to be invited to buy shares in the.
Choosing a business structure It is a long-term business or short-term project? - Are you earning? Choose the one that is best for you. There is no single.
Business Ownership Structures
Legal Structures for Social Enterprise Nicola Dickins Make it Happen Consultancy.
INVESTMENT AND SETTLEMENT IN THE U.K DENIZ OGUZKANLI PARTNER RONALD FLETCHER BAKER LLP CITY OFFICE WEST END OFFICE ISTANBUL OFFICE WITH MORAL LAW FIRM.
BUSINESS ORGANIZATIONS Chapter Eight. SOLE PROPRIETORSHIPS Section One.
Forms of Business Ownership 5-2. Goals Understand the three major forms of business ownership. Determine when each form of business ownership is most.
Types of Business Ownership Back to Table of Contents.
Year 10 Accounting & Entrepreneurship.  Define the types of business structure  List advantage and disadvantages of each  Identify when to use which.
Limited Companies Mrs Reid. Learning Objectives –Identify the key feature of Limited Companies –Define limited liability and incorporation –Explain the.
Legal structure of business
Introduction to the Module
Handout 4: Private sector organisations
1.2 Understanding different business forms
The Application of Legal Principles in Business
Organisations Bott Chapter 3.
Corporations and Trusts Law Chapter 3 Choosing a Business Structure
Forms of Business Ownership
Forms of Business Organisation
Getting Started.
Business Law Outcome 3.
Level 1 Business Studies
Ownership and liability
Forms of Ownership for International Ventures
Private and Public Limited Liability Companies
Presentation transcript:

Sole | Partnership | Ltd | LLP | CIC Setting up as a sole trader If you operate as a sole trader, you have complete control over how your business is run, you make all the decisions and take all the profits. You can hire employees. The start-up formalities are minimal and costs are correspondingly low. You must register as self employed by contacting HM Revenue & Customs (HMRC There is unlimited liability for debts, so if your business loses money, you may have to sell your personal assets (house, car and so on) to pay off business debts. Setting up a partnership Each partner needs to register as self employed. Partnerships are often entered into by groups of professionals, such as lawyers and accountants, who work together to share skills and knowledge.

Sole | Partnership | Ltd | LLP | CIC Setting up a limited company The biggest difference between limited company status and sole trader or partnership status is that a limited company is treated as a separate entity from its owners, with its own legal existence. Shareholders (or members) of the company can be individuals or other companies. They are not liable for the debts of the company unless they have given personal guarantees on, say, bank loans. Limited Liability Partnership (LLP) An LLP is really a hybrid of a partnership and a limited company. Community Interest Company (CIC) This is essentially a limited company, whose primary objectives are social or for community benefit rather than profit making.

What are the duties and liabilities of a company director? In order for a limited company to operate, its shareholders delegate the day-to-day management responsibility to a board of directors. Formal and specific powers and rules are set out in the Memorandum and Articles of Association (the constitutional documents of the company). Directors have a duty to promote the success of the company and must consider all of the long-term consequences and implications of their decisions considering their employees, customers, shareholders, suppliers, community, environment and company's reputation Act within their powers and take responsibility for their own decisions and exercise appropriate judgement on any information that assists in reaching these decisions. Directors are expected to have knowledge of all areas of the business, or engage specialists to help them.

What are the duties and liabilities of a company secretary? Traditionally, it has been the company secretary who has performed these vital administrative duties. However, since April 2008, private companies are no longer required to have a company secretary, but for this task you must have one. As an officer of the company, a company secretary will also be criminally liable, along with the other directors The following are duties typically performed by a company secretary: Ensuring the company complies with the company's constitution Maintaining company records - register of directors, names and roles. Records of minutes of general meetings and filing an annual returns Company records must be made available for inspection