Legal Structure

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  • Legal Structure
    • Private Limited Company
      • funded by shares
      • limited liability
      • separate legal identity from owner
      • has access to more captial
      • more legal formailites
      • finances must be published
    • Public Limited Company
      • shares traded on the stock exchange
      • limited liability
      • separate legal identity
      • have to publish financial details
      • if founder losses more than 50 percent lose control of the business
    • Unlimited liability is business is liable for debts incurred
    • limited liability busimess is only liable for the amount they've invested
    • Sole trader is one person trading a business
      • little money for expansion
      • ulnlimited liability
      • simple and quick to set up
      • inexpensive to set up
      • keep profits
      • few legal formalities
      • complete control
      • close relationship with customers
      • limited collateral
      • difficult to raise finance
      • difficult to cover when ill or on holiday
    • Parntership
      • unlimited liabilty
      • between 2 and 20 people
      • decisions and responsibilities are shared
      • deed of partnership
      • expertise of more than one person
      • partners specialise in different thing
        • raise captial
      • share the work load
      • profits are shared
      • legally bound to honour decisions
      • disagreements
      • Non for profit
        • Untitled

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