Sole Trader
A sole trader is their own person and if they are losing money, their possessions can be lost. You have flexibility and you can become a PLC. There is less paperwork however you get no support when your ill unless you have insurance. You must keep up to date with laws and it can get lonely.
Partnership
Partnerships can be up to 20 people and you share the risks and the skills but you can get into arguments. A good idea is to get legal help beforehand since everything is liable and people can change. Everyone does not have to earn the same amount of the company. Partners must sign off on accounts to show they are not hiding anything.
Private Limited Company
A private limited company cannot sell shares on the market. Friends and family can invest and the directors are the people who decide if the company goes public. You do not need to show your accounts and an annual general meeting.
Public Limited Company
It is key to know the 2006 companies act. You must register which is a lot easier nowadays and you must give the information of the business. Companies can sell shares on the market and a PLC needs two directors and must have a qualified secretary. You need an annual general meeting while going public with your accounts as well.
Companies forget to move their partnerships or sole traders to companies when they have a chance which is worth doing since you reduce liability.
Tax is tax and you got to pay it.
A sole trader is their own person and if they are losing money, their possessions can be lost. You have flexibility and you can become a PLC. There is less paperwork however you get no support when your ill unless you have insurance. You must keep up to date with laws and it can get lonely.
Partnership
Partnerships can be up to 20 people and you share the risks and the skills but you can get into arguments. A good idea is to get legal help beforehand since everything is liable and people can change. Everyone does not have to earn the same amount of the company. Partners must sign off on accounts to show they are not hiding anything.
Private Limited Company
A private limited company cannot sell shares on the market. Friends and family can invest and the directors are the people who decide if the company goes public. You do not need to show your accounts and an annual general meeting.
Public Limited Company
It is key to know the 2006 companies act. You must register which is a lot easier nowadays and you must give the information of the business. Companies can sell shares on the market and a PLC needs two directors and must have a qualified secretary. You need an annual general meeting while going public with your accounts as well.
Companies forget to move their partnerships or sole traders to companies when they have a chance which is worth doing since you reduce liability.
Tax is tax and you got to pay it.