|
|
|
|
|
Identity of your business
An important decision to make early on is to decide what legal form your business will take. Whatever you decide is not irrevocable, but it will take time and money to undo mistakes.
You can choose between:
 Sole trader
Limited company
Partnership
Limited liability partnership (LLP)
Corporative
If you want to work on your own your choice is either sole trader or limited company.
If you want to work with others your choice is between partnership, liability partnership, limited company or cooperative.
The choice between sole trader and limited company will probably be made because of monetary reasons.
There is probably very little to choose between a sole trader and a partnership when it comes to credibility
Trading as a limited company may give your business more credibility than a partnership or a sole trader, but may not work for very small businesses.
The new form of LLP may also give an air of creditability to your business venture, as it means you have to meet certain commitments at Companies House.
If you are sole trader, you are liable for all the money your business owes. Your own personal assets, such as your house, furniture and car, can be seized to pay your business debts; in the final breakdown you can be made bankrupt. This unlimited liability also applies to a conventional partnership, with a further drawback: you are liable for your partner's shares of debts.
Limited companies and limited liability partnership appears to be more attractive than sole trader and applies to both a limited liability. Share holders liability for debt is, in most cases, limited to the amount they paid for their shares. The personal assets of directors can only be touched if that company has be trading fraudulently or when the directors knew it was insolvent. However ones, you have become established you may be able to shed your personal guarantees, a sole trader or partner can not a shed unlimited liability.
|
 |
|
|
 |
 |
|
If your business is running and you need to open a bank account we can do it for you in any bank for your choice. |
|
What is VAT
Value Added Tax (VAT) is a tax businesses charge when they supply their goods and services. |
|
|
|
|
|
|
|
