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1 Limited liability 2 Right to manage 3 Agency 4 Withdrawal from business 5 Business property 6 Borrowing power 7 Formation 8 Governance formalities 9 Publicity 10 Tax 11 Perpetual existence 12 Numbers of member
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1 Limited liability (1) Shareholder: Y (2) Shareholder of UC: N (3) Partner: N, Limited partner: Y (4) Sole trader: N
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2 Right to manage (1) Shareholder: N (2) Shareholder of UC: Y (3) Partner: Y, Limited partner: N (4) Sole trader: Y 3 Agency (1) Shareholder: N (2) Director: Y (3) Partner: Y (4) Sole trader: Y
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4 Withdrawal from business (1) Partner: easier, by assignment, or expiration (2) Shareholder of PLC: easy (3) Shareholder of Co Ltd: may be subject to restriction of BOD 5 Business property (1) Company property: company rather than shareholders (2) Partnership property: jointly owned by partners
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6 Borrowing power (1) Sole trader: difficult, solid security or guarantor (2) Partnership: difficult, solid security or guarantor (3) Company: easier, Share Debenture: loan with mortgage, floating charge Bond
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7 Formation (1) Sole trader: easiest (2) Partnership: easiest (3) Company: by registraion 8 Governance formalities (1) Partnership: N (2) Company esp. PLC: Y, lots of mandatory requirements
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9 Publicity (1) Sole trader: completely private (2) Partnership: completely private (3) Company: mandatory disclosure except SMEs Turnover of less than £ 2.8 million Assets of less than £ 1.4 million Fewer than 50 employees
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10 Tax (2)Sole trader: income tax, national insurance, personal allowance (3)Partner: income tax, national insurance, personal allowance (4)Company: corporation tax, capital gains tax, Rate of corporation tax is lower than that of individuals Capital gains tax make things complicate Self-employed people has definite tax advantage to be gained from forming a company
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11 Perpetual existence (1) Company: Y (2) Partnership: N 12 Numbers of member (1) Partnership: 20 or less, except solicitors, accountants, stockbrokers (2) Company: 1 or more for LC; 2 or more for PLC
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