There is two types of limited companies - private and public. Both have some important differences compared to sole traders and partnerships. A limited company is incorporated - it has separate identity to the business in the eyes of the law. The owners only risk loosing the money they've invested. It's owned by shareholders, the more shares you get the more you own.
Public limited company can be from one member to seven members. They can sell shares to the public and on the stock market. They are seperate identities to the owners, meaning the owner only looses it's investment. It's easier to raise finance from capitalists and can get angel investors involved in the business. They have to publish financial records every year and is more expensive to start up with costs of legal paperwork.
Comments
No comments have yet been made